BP (BP) may be at risk of a takeover after a significant drop in its share price left the UK energy giant undervalued, the Financial Times reported Friday, citing people familiar with the matter.

Shell (SHEL), Chevron (CVX), ExxonMobil (XOM), TotalEnergies (TTE), Adnoc, and oil trader Vitol have each reviewed BP's business, with some conducting internal valuations, the sources told the FT.

FT said internal valuations suggest BP's total asset worth exceeds 120 billion British Pounds 120 billion (159.3 billion), more than double its current 57 billion market cap, though the company also carries about $77 billion in debt and long-term obligations.

Shell is reportedly weighing the benefits of BP's natural gas and LNG operations but faces potential integration and regulatory complications, adding that Shell's CEO has publicly prioritized share repurchases over acquisitions.

Chevron and ExxonMobil, currently entangled in arbitration over Chevron's planned Hess (HES) acquisition, may reassess BP depending on the outcome, particularly if they seek alternative growth through gas and trading assets, the FT reported.

Abu Dhabi's Adnoc, which has long-standing ties with BP, is also seen as a potential bidder as it continues to pursue global expansion, the outlet said.

Shell, Chevron, ExxonMobil, TotalEnergies, Adnoc, and Vitol did not immediately respond to MT Newswires' request for comment.

(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.)