Chevron Acquires Stake in Talos’ Proposed Texas Carbon Capture Plant

As part of the agreement, Talos and partner Carbonvert would contribute the Bayou Bend CCS lease to an expanded JV including Chevron in exchange for consideration of cash at closing and capital cost carry through project FID.

Chevron Acquires Stake in Talos’ Proposed Texas Carbon Capture Plant

The Bayou Bend CCS project—currently held by Talos and Carbonvert—is the first and only offshore lease in the U.S. dedicated to CO₂ sequestration. (Source: Talos Energy Inc. / Oil and Gas Investor)

Chevron Corp. agreed on May 3 to acquire a stake in a proposed offshore carbon capture and sequestration (CCS) hub being developed by Talos Energy Inc. in South Texas.

The offshore Gulf of Mexico (GoM) producer Talos, along with partner Carbonvert Inc., was selected last August for a Texas General Land Office (GLO) carbon storage project on a site located near Beaumont and Port Arthur, Texas. The project—now known as Bayou Bend CCS—is the first and only offshore lease in the U.S. dedicated to CO₂ sequestration.

“We believe the addition of Chevron greatly enhances the execution of this hub-scale project and we hope this sends a clear signal to industrial partners in the Beaumont and Port Arthur region that we are focused on making Bayou Bend the premier CCS project in southeast Texas,” Timothy S. Duncan, president and CEO of Talos Energy, commented in a joint release from the three companies on May 3.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.