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Chevron, Talos, Carbonvert execute documents for Bayou Bend CCS joint venture.
Three entities have closed the deal on a highly anticipated joint venture to develop the Bayou Bend CCS offshore carbon and sequestration hub ("CCS") at an approximately 231,000-acre site in Jefferson County, the companies reported May 24.
Chevron U.S.A. Inc. (“Chevron”), through its Chevron New Energies division, Talos Energy Inc. (NYSE: TALO) (“Talos”), through its Talos Low Carbon Solutions division, and Carbonvert, Inc. (“Carbonvert”) announced the execution of definitive documentation and closing of the expanded joint venture, effective May 1, 2022.
Under the terms of the transaction, Chevron has acquired a 50% stake in the expanded Bayou Bend CCS joint venture for gross consideration of $50 million to Talos and Carbonvert, consisting of $30 million of gross upfront cash and up to $20 million of gross capital cost reimbursement, expected to cover Talos and Carbonvert capital expenditures through the project’s final investment decision (“FID”). Equity interests in the joint venture are now 25% Talos, 25% Carbonvert, and 50% Chevron, and Talos is the operator. The three companies have also established an Area of Mutual Interest (“AMI”) over the large Jefferson County offshore region contemplated in the state of Texas’s original request for proposal, aligning the parties for future expansion opportunities.
About Chevron
Chevron is one of the world’s leading integrated energy companies. According to the company, "We believe affordable, reliable and ever-cleaner energy is essential to achieving a more prosperous and sustainable world. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We are focused on lowering the carbon intensity in our operations and seeking to grow lower carbon businesses along with our traditional business lines." More information about Chevron is available at www.chevron.com.
About Talos Energy
Talos Energy (NYSE: TALO) is "a technically driven independent exploration and production company focused on safely and efficiently maximizing long-term value through its operations, currently in the United States and offshore Mexico, both upstream through oil and gas exploration and production and downstream through the development of future carbon capture and storage opportunities," the company reports. "As one of the Gulf of Mexico's largest public independent producers, we leverage decades of technical and offshore operational expertise towards the acquisition, exploration and development of assets in key geological trends that are present in many offshore basins around the world. With a focus on environmental stewardship, we are also utilizing our expertise to explore opportunities to reduce industrial emissions through our carbon capture and storage initiatives along the U.S. Gulf Coast and Gulf of Mexico."
For more information, visit www.talosenergy.com.
About Carbonvert
Carbonvert Inc. is a carbon capture and storage project development and finance company that "simplifies decarbonization for industrial clients," according to the company. Carbonvert was established in late 2020 by Alex Tiller and Jan Sherman, veterans of the renewable and conventional energy sectors to manage the financial and technical complexities of CCS project development. "Our executives have decades of experience developing projects, financing tax advantaged projects, trading carbon offsets, and structuring over $4 billion in infrastructure investments, including equity, tax equity, and debt for large assets. Carbonvert’s senior team has extensive experience with large-scale CO2 projects and have designed, secured environmental and CO2 storage permits, and completed and operated large-scale carbon capture, transportation, and storage projects notably Petra Nova CCS in Thompsons, Texas, Quest CCS in Alberta, Canada, and In Salah in Algeria."
For more information, visit www.carbonvert.com.