Chevron USA Inc., through its Chevron New Energies division, Talos Energy Inc., through its Talos Low Carbon Solutions division, and Carbonvert Inc. executed definitive documentation and closed the expanded joint venture to develop the Bayou Bend CCS offshore carbon capture and sequestration (CCS) hub, effective May 1, 2022. The memorandum of understanding was signed in early May (OGJ Online, May 3, 2022).
With the deal, Chevron acquired a 50% stake in the expanded Bayou Bend CCS joint venture for gross consideration of $50 million to Talos and Carbonvert, consisting of $30 million of gross upfront cash and up to $20 million of gross capital cost reimbursement, expected to cover Talos and Carbonvert capital expenditures through the project’s final investment decision (FID).
Talos and Carbonvert now hold 25%. Talos remains as operator.
The companies also have established an Area of Mutual Interest over the full 231,000-acre Jefferson County offshore region contemplated in the State of Texas’s original request for proposal, aligning the parties for future expansion opportunities.