US-based upstream oil company Kosmos Energy Ltd (LSE:KOS, NYSE:KOS) is in early discussions with Tullow Oil PLC (LSE:TLW) regarding a potential all-share offer for the London-listed exploration and production group.
According to a regulatory statement, no decision has been made regarding a firm intention to proceed or the terms of any possible deal.
"There can be no certainty that any offer will be made, nor as to the terms on which any offer might be made," Kosmos stated.
Under the UK Takeover Code, Kosmos has until 9 January 2025 to either make a firm offer or rescind the offer.
Tullow Oil shares fell 2.5% following Friday’s opening bell.