Oct 6 Reuters Shares of Pioneer Natural Resources rose 10 in premarket trading on Friday following reports that top U.S. oil and gas producer Exxon Mobil was in advanced talks to buy the shale producer in a deal valued at about 60 billion.

A deal would be Exxon39;s biggest acquisition since its 81 billion deal for Mobil in 1998 and could solidify the oil major39;s position in the lucrative Permian basin.

Exxon39;s shares were down 3 at 105.74.

If the negotiations conclude successfully, an agreement between Exxon and Pioneer could be reached in the coming days, Reuters reported, citing three sources.

Pioneer has a market value of 50 billion and is one of the biggest producers in the Permian basin, which stretches across parts of Texas and New Mexico and is known for its relatively low cost to extract oil and gas.

Any deal for Pioneer will be closely scrutinized by investors looking for a substantial premium, a reality that has not existed most recently in explorer and producer MA, said TD Cowen analysts in a note.

However, any deal could attract political and regulatory scrutiny.

Pioneer is the Permian39;s largest operator at 9 of gross production while Exxon is No. 5 at 6. Combined amounts to 15 of operated Permian production, but only 6 of total US production. These datapoints are relevant given FTC scrutiny around consolidation, RBC Capital Markets analyst Scott Hanold said in a note.

Record high oil and gas prices helped producers reap record profits last…