Chevron U.S.A. Inc., through its Chevron New Energies division; Talos Energy Inc., through its Talos Low Carbon Solutions division; and Carbonvert, Inc. have announced the execution of definitive documentation and closing of the expanded joint venture to develop the Bayou Bend CCS offshore carbon capture and sequestration hub, effective May 1, 2022.
Under the terms of the transaction, Chevron has acquired a 50% stake in the expanded Bayou Bend CCS joint venture for gross consideration of USD 50 million to Talos and Carbonvert, consisting of USD 30 million of gross upfront cash and up to USD 20 million of gross capital cost reimbursement, expected to cover Talos and Carbonvert capital expenditures through the project’s final investment decision (FID).
Equity interests in the joint venture are now 25% Talos, 25% Carbonvert, and 50% Chevron, and Talos is the operator. The three companies have also established an Area of Mutual Interest (AMI) 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.
