Chevron, Talos and Carbonvert Announce Closing of Joint Venture Expansion of Bayou Bend CCS Project
Chevron U.S.A. Inc. (“Chevron”), through its Chevron New Energies division, Talos Energy Inc. (“Talos”), through its Talos Low Carbon Solutions division, and Carbonvert, Inc. (“Carbonvert”) announced on May 24, 2022, the execution of definitive documentation and closing of the expanded joint venture to develop to develop the Bayou Bend CCS offshore carbon capture and sequestration (“CCS”) hub, effective May 1, 2022.
Under the terms of the transaction, Chevron has acquired a 50 percent stake in the expanded Bayou Bend CCS joint venture for gross consideration of $50 million to Talos and Carbonvert, consisting of $30 million of gross upfront cash and up to $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 percent Talos, 25 percent Carbonvert, and 50 percent 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.