Shell Plc is working with advisers to evaluate a potential acquisition of BP Plc, though it is waiting for further stock and oil price declines before deciding whether to pursue a bid, Bloomberg News reported on Saturday citing people familiar with the matter.

The oil major has been more seriously discussing the feasibility and merits of a takeover with its advisers in recent weeks, the report said, adding that any final decision will likely depend on whether the rival's stock continues to slide.

It may also wait for BP to reach out or for another suitor to make a first move, and its current work could help it get prepared for such a scenario, some of the people told Bloomberg News.

Deliberations are in the early stages and Shell may opt to focus on share buybacks and bolt-on acquisitions rather than a megamerger, the report added.

"As we have said many times before we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline and simplification,” a Shell spokesperson said when asked about the report.

BP did not immediately respond to a Reuters request for comment.