United States – Chevron, Talos Energy, and Carbonvert have signed an expanded joint venture agreement to develop the Bayou Bend CCS offshore carbon capture and sequestration hub, which is currently held by Talos and Carbonvert.
The winning bidder for the Texas General Land Office’s Jefferson County, Texas, carbon storage lease, located in state waters offshore Beaumont and Port Arthur, Texas, in 2021 was a joint venture between Talos and Carbonvert. According to preliminary estimates from Talos and Carbonvert, the Bayou Bend CCS project site could potentially sequester 225 to 275 million metric tons of carbon dioxide (CO2) from industrial sources in the area. The Bayou Bend CCS lease is the first and only offshore CO2 sequestration lease in the United States.
Closing the deal
In exchange for consideration of cash at closing and capital cost carry through project FID, Talos and Carbonvert would contribute the Bayou Bend CCS lease to an expanded joint venture that included Chevron. Upon closing of the joint venture, equity interests in the joint venture would be 25 percent Talos, 25 percent Carbonvert and 50 percent Chevron, and Talos would remain the operator.
The proposed joint venture’s formation is contingent on the negotiation of definitive agreements and the fulfillment of customary closing conditions, such as regulatory approval.