A report suggesting multinational oil company Shell is in early talks to acquire fellow gas giant BP sent shockwaves through Houston's energy industry Tuesday—but Shell is firmly denying any such discussions are underway.

A deal would be a landmark combination of two supermajor oil companies.

Shell said “no talks are taking place” for a potential megamerger with rival BP that would cost more than $80 billion and represent the biggest energy deal of the century. The denial comes on the heels of the Wall Street Journal reporting June 25 that Shell is in early talks to acquire BP in a much-rumored deal.