BP is valued at over 80 billion dollars and the newspaper describes a potential deal as the largest in the oil industry in a generation.
The two companies, based in the United Kingdom, are among the world's largest non-state-owned oil companies. An acquisition could give Shell, with a market value of over 200 billion dollars, better conditions to challenge larger competitors, such as American Exxon and Chevron.
A spokesperson for Shell dismisses the reports as market speculation.
"There are no talks going on", the spokesperson says to Bloomberg.
BP has declined to comment. The company's share rose sharply after the reports were published, to then lose most of the increase.
