TotalEnergies Acquires Talos Low Carbon Solutions For $148M

TotalEnergies Acquires Talos Low Carbon Solutions For $148M - Carbon Herald

French multinational energy company TotalEnergies has just announced the acquisition of Talos Low Carbon Solutions (TLCS), a subsidiary of Talos Energy. 

The sale includes Talos‘s entire carbon capture and sequestration (CCS) business, including all three of its projects along the US Gulf Coast.

These are the Coastal Bend CCS LLC, the Harvest Bend CCS LLC and the Bayou Bend CCS LLC projects.

The total transaction value of the deal between TotalEnergies and Talos is $148 million. 

Timothy S. Duncan, CEO and President of Talos, stated: “Since TLCS’s inception, we have successfully applied our energy expertise as an early mover aimed at developing decarbonization solutions along the U.S. Gulf Coast. Strong market interest during our capital raise provided the strategic option to fully monetize the business to TotalEnergies, an established global leader in CCS development.”

“Robin and our entire CCS team did an outstanding job crystallizing value for Talos shareholders for a strong financial return. The transaction will further enable Talos to prioritize cash flow generation and optimal capital allocation in our core Upstream business. We are also continuing to explore business development and strategic M&A opportunities,” Duncan said.

Relevant: Equinor Purchases Stake In Major U.S. Carbon Capture Project

As a result of the transaction, TotalEnergies will own 25% of the Bayou Bend project, where the remaining shares are distributed among Chevron (50%) and Equinor (25%). 

Patrick Pouyanné, Chairman and CEO of TotalEnergies, expressed the company’s pleasure to be entering the Bayou Bend project, which is conveniently located in close proximity to its Port Arthur refinery. 

As such, Pouyanné said the project “will be instrumental” to the company’s efforts to slash emissions across its operations in the United States. 

“This transaction gives momentum to the decarbonization of hard-to-abate US emissions and marks a milestone on our journey to get to Net Zero by 2050, together with society,” Pouyanné concluded.

Read more: TotalEnergies And Partners To Test Subsea CO2 Capture Technology In Brazil

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