Talos Energy Inc. (Talos) has formed an exclusive joint venture with Storegga Geotechnologies Ltd. (Storegga) to source, evaluate, and develop carbon capture and storage (CCS) project opportunities on the United States Gulf Coast and Gulf of Mexico (GOM), including state and federal waters offshore Texas, Louisiana, Mississippi, and Alabama.
The joint venture combines Talos’s offshore operational and sub-surface experience with Storegga’s end-to-end CCS project experience. Under the terms of the agreement, as individual CCS projects are matured in the future, each will be ring-fenced with separate operating agreements, financing structures, and the possibility of additional working interest partners. The agreement requires zero up-front capital commitments, and the partnership will share costs 50/50 in the initial phases. Talos is designated as the operating partner of the joint venture.
Headquartered in Houston, Talos Energy is an offshore energy company focused on oil and gas exploration and production in the US GOM and offshore Mexico. “We’re excited to announce this joint venture with Storegga and thrilled to partner with their team as they expand into the United States. Engaging in CCS projects along the Gulf Coast and shallow water Gulf of Mexico compliments our operating skill set and diversifies the company to seize this significant market opportunity,” said Talos President and Chief Executive Officer Timothy S. Duncan. “We have a responsibility to deliver affordable, reliable energy with the lowest carbon footprint possible, and this joint venture allows us to expand our impact beyond our own assets to provide solutions for removing emissions from critical industrial sectors in our backyard. We are actively working on a host of ideas and are proud to be an exclusive operating partner with a recognized leader in the rapidly-evolving CCS space.”
Storegga is an independent UK company focused on carbon reduction and removal. It is the lead developer of the Acorn CCS Project and the Acorn Hydrogen Project in Northeast Scotland.
“The rapid deployment of CCS and carbon management value chains requires appropriate geological storage for carbon sequestration, access to emitters and existing infrastructure, and partnerships with experienced, like-minded organizations that share the desire to make this happen,” said Storegga Chief Executive Officer Nick Cooper. “The US Gulf Coast offers significant potential for CCS and we are delighted to be partnering with Talos, a leading offshore operator. The joint venture demonstrates the international opportunities for Storegga as an independent developer of CCS infrastructure.”