TotalEnergies enriches its low-carbon portfolio with Talos’ complete CCS enterprise

TotalEnergies E&P USA, a subsidiary of France’s vitality big TotalEnergies, has expanded its carbon seize and storage (CCS) arsenal by buying Talos Low Carbon Options (TLCS), a subsidiary of the U.S.-based Talos Vitality. The sale entails all property in Talos’ CCS enterprise, together with its three tasks alongside the U.S. Gulf Coast.

TotalEnergies can pay $125 million for these property plus customary reimbursements, changes, and retention of money, which mixed totals roughly $148 million. Talos intends to make use of the proceeds from the sale to repay borrowings underneath its credit score facility and for basic company functions. Upon the completion of the transaction, the French participant will personal a 25% share within the Bayou Bend venture, alongside Chevron (50%, operator) and Equinor (25%). It is a main CO₂ storage venture situated alongside the Texas Gulf Coast, near the corporate’s property within the area.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, commented: “TotalEnergies is happy to enter the Bayou Bend venture via the acquisition of Talos Low Carbon Options. Ideally situated near our Port Arthur refinery and our petrochemicals property in La Porte, this venture will probably be instrumental for the discount of direct emissions from our US operations. This transaction offers momentum to the decarbonization of hard-to-abate US emissions and marks a milestone on our journey to get to web zero by 2050, along with society.”

The Bayou Bend venture is a carbon transportation and storage answer for industrial emitters situated within the Houston Ship Channel and Beaumont – Port Arthur area, one of many largest industrial corridors in the US. Comprising licenses devoted to CO₂ storage, offshore and onshore, protecting about 600 km², the venture might allow the storage of a number of hundred million tons of CO₂.

As well as, TotalEnergies will personal a 65% operated curiosity within the Harvest Bend (Louisiana) venture and a 50% curiosity within the Coastal Bend (Texas) venture. With these property being situated farther away from the oil main’s different present property, the agency intends to divest its curiosity in these two tasks after the closing of the acquisition.

Timothy S. Duncan, Talos’ President and CEO, highlighted: “Since TLCS’s inception, we’ve efficiently utilized our vitality experience as an early mover geared toward growing decarbonization options alongside the U.S. Gulf Coast. Robust market curiosity throughout our capital increase offered the strategic choice to completely monetize the enterprise to TotalEnergies, a longtime world chief in CCS improvement.

“Robin and our complete CCS crew did an impressive job crystallizing worth for Talos shareholders for a powerful monetary return. The transaction will additional allow Talos to prioritize money circulation era and optimum capital allocation in our core Upstream enterprise. We’re additionally persevering with to discover enterprise improvement and strategic M&A alternatives.”

TotalEnergies underlines that it’s on monitor to allow important decarbonization of European companies via tasks equivalent to Northern Lights in Norway, Aramis within the Netherlands, and Bifrost in Denmark.