Energy buyout company NGP Energy Capital Management is considering offloading two oil producers in auction processes, reported Reuters citing people familiar with the matter.

The company is expected to raise more than $7bn in total with the sale of the Permian basin-focused oil producers, Tap Rock Resources and Hibernia Resources.

NGP is working with undisclosed investment banks for the sale process of the oil producers.

The latest move comes as NGP looks to capitalise on higher energy prices.

Tap Rock is producing more than 100,000 barrels of oil equivalent per day (boed) from the Delaware portion of the basin in New Mexico. Its assets cover an area of more than 35,000 net acres.

The company has more than 25,000 acres in Eddy and Lea County in New Mexico, US which have net production of 100,000 barrels of oil equivalent per day boed.

It holds over 10,000 net acres in Lea and Eddy counties, New Mexico and Loving County, Texas. These assets have more than 10,000 boed of net production.

Hibernia holds assets in the Midland part of the Permian basin in Texas.

A potential sale of Tap Rock Resources and Hibernia could fetch around $5bn and $2bn respectively for NGP, according to the sources.

In a similar move recently, Ovintiv signed a $4.27bn deal to buy assets in the Midland Basin in the US, from entities controlled by EnCap Investments.

Ovintiv will acquire almost all leasehold interest and associated assets in the northern Midland from Black Swan Oil & Gas, PetroLegacy Energy, and Piedra Resources.