Talos Energy buys Gulf of Mexico prospect from Exxon Mobil, sells stake to BP - Houston Chronicle

Talos Energy said it will buy prospect positions in the Gulf of Mexico from Exxon Mobil, while selling a majority stake to BP for another prospect.

Houston-based Talos is making the deals in separate transactions to boost its exploration position while also cutting costs by letting BP develop one of its top prospects.

The deals both include acreage in Green Canyon blocks south of New Orleans. Talos will acquire the Hershey prospect from Exxon Mobil in four adjacent blocks for an undisclosed cost.

On the other hand, Talos will sell a 75 percent stake in its Puma West prospect to BP - also at an undisclosed cost. Puma West is near BP's existing Mad Dog platform and its Mad Dog Phase 2 development, which is currently under construction.

The idea is that BP could develop Puma West while connecting it to existing facilities via underwater pipelines and umbilicals in order to save on spending.

RELATED: Exxon Mobil puts offshore assets up for sale

"As these transactions prove, Talos is well-positioned to continue unlocking material resource opportunities in our basin through multiple creative business development avenues," said Talos Chief Executive Timothy Duncan. "We are excited to add these two significant, oil-weighted prospects to our portfolio."

Talos focuses exclusively on production and exploration on both the U.S. and Mexican sides of the Gulf of Mexico.

BP is currently the top producer in the U.S. Gulf of Mexico, while Exxon Mobil is looking to trim its position in the Gulf, focusing instead on emerging deepwater regions elsewhere around the world.

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https://www.houstonchronicle.com/business/energy/article/Talos-Energy-buys-Gulf-of-Mexico-prospect-from-14451944.php

2019-09-19 13:03:00Z
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