With domestic oil prices continuing to rebound, Covington-based LLOG Exploration Co. is in talks to sell its Gulf of Mexico oil exploration joint venture with Blackstone Group for more than $2 billion, Reuters reported on Tuesday, citing “people familiar with the matter.”

LLOG, one of the Gulf of Mexico's largest private oil and gas exploration companies, announced the joint venture with Blackstone in 2012. As part of that deal, the private equity firm agreed to invest $1.2 billion in LLOG.

Initial sale information was sent to potential buyers last week, according to Reuters, which cited one of its sources.

Despite the recent uptick in oil prices, U.S. producers have responded cautiously, in some cases using the opportunity to sell assets to deploy the incoming cash into other production areas or pay down debt incurred during the boom years before 2014.