Talos Energy Inc. announced that Bayou Bend CCS LLC, Talos's venture with Carbonvert, Inc., executed definitive lease documentation with the Texas General Land Office, formalizing the previously announced carbon capture and sequestration site located offshore Jefferson County, Texas, near the Beaumont and Port Arthur, Texas industrial corridor.
Talos separately announced that it had established a CCS strategic alliance with Core Laboratories N.V. to provide technical evaluation and assurance services for CCS subsurface analysis, including the company's upcoming 2022 stratigraphic evaluation wells.
Texas GLO Lease
On March 11, 2022, the Venture jointly executed lease documentation with the GLO establishing the first ever major offshore carbon sequestration site in the United States. The lease comprises more than 40,000 acres immediately adjacent to the Beaumont and Port Arthur, Texas industrial corridor and maintains an estimated sequestration capacity of 225 – 275 million metric tons of CO2. The project will be known as Bayou Bend CCS. Talos will be the operator and holds a 50% equity interest.
Talos President and Chief Executive Officer Timothy S. Duncan commented: "We are pleased to reach definitive agreements with the State of Texas and look forward to making significant progress on this important CCS hub opportunity in 2022. In the coming months we hope to identify anchor industrial partners for the Bayou Bend CCS project as well as a midstream transportation solution in the region. Our bid for the large-scale permanent sequestration site was selected from a highly competitive process in August last year. Since the GLO bid and subsequent award announcement, the team has moved rapidly to build out one of the premier CCS project portfolios in the United States, which has now all been organized under Talos Low Carbon Solutions LLC, or "TLCS," the Company's CCS subsidiary. We are dedicated to continuing to scale TLCS to become an industry-leading CCS platform and a meaningful business for Talos in the future."
Core Lab Strategic Alliance
Separately, on March 5, 2022 the Company established a technical alliance with Core Lab to advance CCS site characterization, including stratigraphic evaluation wells, reservoir core sampling, geological assessment and rock and fluid sample analysis, all of which are critical inputs for EPA Class VI permit applications. The alliance also provides a framework for future collaboration around transparent CO2 stream monitoring and verification. Core Lab is a leading global provider of reservoir description and enhancement products and services and currently partners with Talos on numerous upstream subsurface activities.
Talos Executive Vice President Low Carbon Strategy and Chief Sustainability Officer, Robin Fielder, commented: "We are pleased to announce this strategic alliance with Core Lab to deliver technical assurance for our growing portfolio of sequestration sites and, ultimately, for our customers. Capitalizing on our respective subsurface expertise, this alliance strengthens our technical capabilities leading up to the filing of CO2 injection well permits this year and advances TLCS's ability to deliver high-quality, end-to-end CCS solutions to customers across the Gulf Coast."
