Talos Energy’s venture with Carbonvert, Bayou Bend CCS, has executed definitive lease documentation with the Texas General Land Office for the carbon capture and sequestration (CCS) site offshore Jefferson County, near the Beaumont and Port Arthur industrial corridor.
Talos also established a CCS strategic alliance with Core Laboratories to provide technical evaluation and assurance services for CCS subsurface analysis, including the company’s upcoming 2022 stratigraphic evaluation wells.
On March 11, 2022, Bayou Bend CCS executed lease documentation with the GLO establishing the first-ever major offshore carbon sequestration site in the United States. The lease comprises more than 40,000 acres immediately adjacent to the Beaumont and Port Arthur industrial corridor and maintains an estimated sequestration capacity of 225 – 275 million metric tons of CO2. Talos will be the operator and holds a 50 percent equity interest.
“We are pleased to reach definitive agreements with the State of Texas and look forward to making significant progress on this important CCS hub opportunity in 2022. In the coming months, we hope to identify anchor industrial partners for the Bayou Bend CCS project as well as a midstream transportation solution in the region,” Talos President and Chief Executive Officer Timothy S. Duncan said.
“Our bid for the large-scale permanent sequestration site was selected from a highly competitive process in August last year. Since the GLO bid and subsequent award announcement, the team has moved rapidly to build out one of the premier CCS project portfolios in the United States, which has now all been organized under Talos Low Carbon Solutions. We are dedicated to continuing to scale TLCS to become an industry-leading CCS platform and a meaningful business for Talos in the future,” Duncan added.
The technical alliance with Core Lab will advance CCS site characterization, including stratigraphic evaluation wells, reservoir core sampling, geological assessment, and rock and fluid sample analysis, all of which are critical inputs for EPA Class VI permit applications.
The alliance also provides a framework for future collaboration around transparent CO2 stream monitoring and verification. Core Lab is a leading global provider of reservoir description and enhancement products and services and currently partners with Talos on numerous upstream subsurface activities.
“We are pleased to announce this strategic alliance with Core Lab to deliver technical assurance for our growing portfolio of sequestration sites and, ultimately, for our customers. Capitalizing on our respective subsurface expertise, this alliance strengthens our technical capabilities leading up to the filing of CO2 injection well permits this year and advances TLCS’s ability to deliver high-quality, end-to-end CCS solutions to customers across the Gulf Coast,” Talos EVP of Low Carbon Strategy and Chief Sustainability Officer Robin Fielder added.
