Blackstone (BX) is in the initial stages of considering a sale of Beacon Offshore Energy, which operates oil and gas assets in the Gulf of Mexico, for over $5 billion, Bloomberg reported Tuesday, citing people familiar with the matter.

The company is in discussions with investment banks about bringing the Houston-based driller to market as early as the first quarter.

Beacon, owned by the alternative asset manager for almost a decade, is likely to draw attention from a flock of large producers operating in the Gulf of Mexico. The line-up of major operators in the region includes Chevron (CVX), BP Plc (BP) and Shell Plc (SHEL), the report added.

There has been no official decision, and the company could decide to not pursue a sale.

Representatives from Blackstone and Beacon did not immediately respond to MT Newswires' request for comment.

Shares of Blackstone were down more than 5% in recent Tuesday trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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