Talos Energy has agreed to acquire a 50% working interest in Block 29 offshore Mexico from Repsol, expanding its international portfolio with a pre-final investment decision oil development that includes more than 200 million barrels of oil equivalent of estimated recoverable resources.
Under the agreement, Talos will pay $30 million if it decides to proceed with a final investment decision (FID), fund a cash carry of up to $20 million for the next exploration well and reimburse certain pre-closing costs.
The transaction is subject to approval by Mexico's Secretaría de Energía (SENER) and the country's National Anti-trust Commission.
Located in the Salinas-Sureste Basin in the southern Gulf of Mexico, Block 29 contains the Polok and Chinwol oil discoveries, which are estimated to hold more than 200 million barrels of oil equivalent of gross recoverable resources, as well as several additional exploration prospects.
The partners expect to advance the project toward a final investment decision in 2027. The planned development is based on a floating production, storage and offloading (FPSO) vessel and is intended to serve as a hub for future developments and nearby discoveries.
“We are excited to participate in this pre-FID development opportunity and look forward to working alongside Repsol as we advance Block 29. The farm-in adds a high quality, large-scale development opportunity and meaningful exploration upside in a proven deepwater basin, further advancing Pillar Three of our strategy and strengthening our long-term growth portfolio.
“Together with the recently announced Gulf of America bolt-on acquisition, these transactions are expected to extend our resource life and further support long-term value creation as we continue to advance our strategy to build a long-lived, scaled portfolio and become the leading pure-play offshore E&P,” said Paul Goodfellow, President and Chief Executive Officer of Talos Energy.