(WO) — Talos Energy has agreed to acquire a 50% working interest in the Repsol-operated Block 29 development offshore Mexico, expanding its deepwater portfolio with an asset containing more than 200 MMboe of estimated gross recoverable resources.
The Block 29 acreage, located in the Salinas-Sureste basin in the southern Gulf of Mexico, includes the Polok and Chinwol oil discoveries and multiple exploration prospects. The partners plan to advance the project toward a final investment decision (FID) in 2027. The development concept is centered on a floating production, storage and offloading (FPSO) vessel designed to support future developments in the area.
Under the agreement, Talos will make a contingent $30 million payment upon FID, provide a cash carry of up to $20 million for the next exploration well and reimburse certain pre-closing costs. The transaction remains subject to approval by Mexico’s Secretaría de Energía (SENER) and the country’s antitrust authority.
“We are excited to participate in this pre-FID development opportunity and look forward to working alongside Repsol as we advance Block 29,” said Paul Goodfellow, Talos president and CEO. “The farm-in adds a high-quality, large-scale development opportunity and meaningful exploration upside in a proven deepwater basin.”
Talos said the project complements its strategy of expanding its offshore portfolio with opportunities that leverage the company’s deepwater technical expertise. The Miocene reservoirs targeted at Block 29 are analogous to fields Talos has developed in the Gulf of America.
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