Talos Energy Acquires 50% Stake in Mexico’s Block 29 Development

The transaction grants Talos a 50% working interest in the block, positioning the company alongside Repsol as the sole participants in the venture. Financial terms include a contingent $30 million payment due upon a final investment decision, a cash carry of up to $20 million for the next exploration well, and reimbursement of specific pre-closing costs. The partners are targeting a final investment decision for the project in 2027.

Management views the deal as a strategic expansion of its deepwater portfolio, utilizing infrastructure designed for a floating production, storage and offloading unit. By targeting Miocene reservoirs similar to those in its U.S. Gulf of Mexico operations, Talos aims to leverage its existing technical expertise to accelerate development. The completion of the acquisition remains subject to customary closing conditions, including necessary approvals from Mexico’s Secretaría de Energía and the National Anti-trust Commission.