Bloomberg Businessweek reports that BP is seeking to buy the largest Chinese gas producer in the country, Tianjin Group.
The deal could also be the first time a major oil company has made a bid for a Chinese oil company.
The announcement comes as BP faces pressure from lawmakers and activists to sell off oil and gas assets in China, where the company’s shares have fallen in recent months.
Tianjin’s share price is down 7% this year and has fallen 10% this month.
BP is expected to announce the deal on Monday.
In August, BP said it would buy Tianjin in a deal valued at $2.3 billion, citing a lack of domestic demand and concerns about the company being “too big to fail.”
The Tianjin deal comes as Chinese companies continue to make investments in U.S. shale gas and as the U.N. Security Council prepares to impose sanctions on Beijing over its territorial ambitions in the South China Sea.
BP was formed in 1901 and is headquartered in Houston.
In October, BP announced it would be purchasing BG Group, a British oil and chemical conglomerate, for $11 billion.
BP shares closed at $55.36 on Wednesday.