Talos, Repsol partner on U.S. Gulf of Mexico exploration project
(WO) – In November 2023, Talos and an affiliate of Repsol entered into a 50/50 partnership to conduct a seismic reprocessing project covering approximately 400,000 gross acres, of which 96,500 acres are under lease by Talos, in the deepwater Green Canyon and Atwater Valley areas of the U.S. Gulf of Mexico. The joint venture aims to identify future subsea tie-back exploitation and exploration prospects in the area using Talos's Neptune facility as the host platform.
In the company’s Q3 financial results, Talos President and Chief Executive Officer Timothy S. Duncan commented, "We have recently signed an important exploration agreement with Repsol, where we are pooling resources with the goal of developing an inventory of impactful wells that could be tied to existing Talos infrastructure.”
Duncan continued, "Weather-related disruptions in the Gulf of Mexico typically impact our production and drilling operations during the third quarter of the year. This quarter, we experienced production downtime related to sustained loop currents in the Green Canyon area, which impacted the floating production unit in our Phoenix Field. However, our oil-weighted assets continued to deliver strong realizations, with a netback margin of close to $45 per boe. As that production is restored and new developments are added, we look forward to positive momentum as we close out the year."