Talos Energy has agreed to acquire a 50% working interest in Block 29 offshore Mexico from Repsol, adding a pre-final investment decision oil development to its international portfolio.
Block 29 contains the Polok and Chinwol discoveries, which are estimated to hold more than 200 million barrels of oil equivalent of gross recoverable resources. The block also includes several additional exploration prospects.
Under the agreement, Talos Energy will pay $30 million if it elects to proceed with a final investment decision. The company will also 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 and the country’s National Anti-trust Commission.
Located in the Salinas-Sureste Basin in the southern Gulf of Mexico, the project is expected to advance toward a final investment decision in 2027.
The planned development would use a floating production, storage and offloading (FPSO) vessel and is intended to serve as a hub for future developments and nearby discoveries.
Talos Energy president and CEO Paul Goodfellow said the farm-in would add a large-scale pre-FID development opportunity and exploration potential in what he described as a proven deepwater basin.
He said the transaction, together with the recently announced Gulf of America bolt-on acquisition, was expected to extend the company’s resource life, support long-term value creation and advance its strategy to build a long-lived, scaled portfolio.
