European energy companies are reviewing a potential acquisition in a key U.S. Gulf offshore project, as interest in stable supply regions increases amid Middle East tensions.

TotalEnergies and Shell are among the companies assessing a majority stake in the Shenandoah field, according to sources familiar with the matter. BP is also considering participation, while Repsol and Chevron are expected to review the opportunity.

The sale process has recently been launched by Beacon Offshore Energy, backed by Blackstone, together with HEQ Deepwater, owned by Quantum Capital Group and Houston Energy. The two stakeholders are offering up to 51% of the project. The remaining stake is held by Navitas Petroleum.

Initial bids are expected in the coming weeks. Additional interest could emerge from energy companies in the Middle East and Asia, although participation is not guaranteed.

The final valuation will depend on the size of the stake sold and oil price trends. All discussions remain private, and most companies involved have declined to comment. Chevron stated it regularly reviews business opportunities but does not disclose development strategies.

Shenandoah is an ultra-deepwater field, with oil and gas reservoirs located at around 30,000 ft. The development involves high technical complexity, with reservoir pressure reaching approximately 20,000 psi. Despite these challenges, it is considered a significant resource within the U.S. Gulf.

Production began in July. By October, four phase-one wells were delivering output in line with a target of 100,000 barrels per day.

The value of U.S. oil and gas assets has increased amid the Middle East conflict, supported by higher oil prices and their distance from the conflict zone, allowing global supply access.