Talos Energy Inc is in talks to acquire Bain Capital-controlled EnVen Energy for about $1 billion and also take on the debt of the U.S. Gulf of Mexico operator, according to people familiar with the matter.

The deal would be among the most significant in recent years in the Gulf, creating a bigger company that would be better placed to take advantage of higher oil prices.

Talos Chief Executive Tim Duncan said in May the offshore oil and gas operator was looking for acquisition targets in the U.S. Gulf of Mexico to boost its production.

Read more: Reuters