New York, NY – LLOG Exploration Offshore, one of the largest privately held oil and gas producers in the U.S. Gulf, is reportedly exploring a potential sale valued at more than $3 billion, including debt, according to sources familiar with the matter. The Covington, Louisiana-based company is working with investment bankers at Guggenheim Securities and has contacted a limited number of prospective buyers in recent weeks to gauge interest.

Company Background and Legacy

Founded in 1977 by Gerald Boelte, LLOG has remained family-controlled, even after Boelte’s passing last year. Any potential deal would reportedly include provisions to preserve his legacy, such as maintaining the LLOG name, keeping the Covington headquarters, and retaining company staff.

“No transaction is guaranteed,” said sources familiar with the discussions, who requested anonymity to speak on private deliberations.

Market Context and U.S. Gulf Interest

While overall deal activity in U.S. upstream oil and gas has been subdued in 2025 after record highs in prior years, the U.S. Gulf of Mexico continues to attract investor attention due to its long-term production potential. Energy firms remain drawn to the region for both new investments and production ramping up from recently developed sites.

LLOG recently reported first oil from its Salamanca floating production unit, which supports drilling in the Leon-Castille fields. Among its partners in this project is Repsol (REP.MC), highlighting the company’s strategic offshore collaborations.

Potential Buyers and Strategic Appeal

Given LLOG’s size and assets, analysts say a major energy company would be a logical buyer. However, the acquisition could also appeal to international oil and gas operators with offshore expertise seeking entry into the U.S. Gulf market. The deal, if completed, could reinforce LLOG’s strategic position in U.S. offshore oil production, while offering investors exposure to a highly productive and stable energy region.

With energy demand and investment appetite for U.S. Gulf assets remaining robust, a successful sale of LLOG could serve as a benchmark for private oil company valuations in the offshore sector.