Talos sees capital moving toward CCS
US-based Talos Energy said December 21 it added measures to its lender provisions to increase flexibility in early-stage investments in carbon capture and sequestration (CCS).
Talos, which has headquarters in Houston, said it completed the redetermination process for its semi-annual reserves-based loan (RBL) and re-affirmed its borrowing base at $950mn.
“Additionally, Talos added key provisions to increase flexibility for early-stage, pre-FID investments in carbon capture and sequestration business opportunities,” the company said.
Last month, Talos and UK CCS specialist Storegga Geotechnologties signed a letter of intent to form a joint venture to sequester CO2 from the Freeport LNG facility in Texas starting in late 2024.
CO2 will be stored less than half a mile (0.8 km) from the Freeport LNG facility, at a Freeport-owned sequestration site with up to a 30-year injection term.
Talos CEO Timothy Duncan said the flexibility in its early-stage investment program allows it to move forward on additional projects slated for the US Gulf of Mexico. Apart from Freeport, the company said it was planning another CCS site in nearby Jefferson County, Texas.
“In 2022, we plan to dedicate a small portion of our capital program to advancing these projects and other potential opportunities as we build a material, industry-leading CCS business unit for the future,” Duncan said.