Page 7 - NorthAmOil Week 38 2022

NorthAmOil INVESTMENT NorthAmOil

Talos to expand Gulf holdings

with EnVen acquisition

GULF OF MEXICO TALOS Energy announced on September 22 several platforms, including five major deepwa-
that it had agreed to acquire privately owned US ter facilities with “significant” open capacity and
Gulf of Mexico operator EnVen for $1.1bn. holds around 420,000 gross acres (1,700 square
Houston-based Talos says it was already one km) in core deepwater areas for future infra-
of the Gulf’s largest publicly listed independ- structure-led development.
ent producers prior to the acquisition. It has Once the deal closes, Talos expects its assets to
acquired a handful of companies in recent years be more than 70% oil-weighted, more than 75%
in a bid to increase scale, including Stone Energy operated and more than 80% focused in deep-
in 2018. The EnVen acquisition – one of the larg- water regions.
est deals in the Gulf in recent years – will double The acquisition comes as no surprise. Talos’
Talos’ operated deepwater facility footprint in president and CEO, Tim Duncan, indicated in
the region and give the company an additional May that the company was looking for acquisi-
24,000 barrels of oil equivalent per day (boepd) tion targets in the Gulf in an effort to bolster its
of production. It will also add infrastructure in offshore production. Then, Reuters reported in
Talos-operated areas and reduce the compa- July, citing sources familiar with the matter, that
ny’s overall greenhouse gas (GHG) emissions Talos was in advanced talks to acquire EnVen.
intensity profile thanks to EnVen’s deepwater Talos’ strategy in the Gulf focuses on the
operations. Talos expects EnVen’s assets to add acquisition and development of conventional
“material scale and diversity” to its footprint. resources close to under-used infrastructure,
EnVen’s output is more than 80% oil- where it can apply its seismic inventory and
weighted, more than 90% operated and more advanced reprocessing techniques. Talos said
than 95% from deepwater regions, according that the EnVen transaction is well-aligned with
to the announcement. The company operates this strategy.™

POLICY

Biden administration prepares for

Cook Inlet lease sale in Alaska

ALASKA THE US Department of the Interior (DoI) has are located toward the northern part of the Cook
announced that it will hold a lease sale in Alas- Inlet Planning Area, roughly from Kalgin Island
ka’s Cook Inlet as directed by the recently passed in the north to Augustine Island in the south,
Inflation Reduction Act. in water depths ranging of 33-260 feet (10-79
The administration of US President Joe Biden metres). The BOEM released the draft Environ-
previously cancelled the lease sale in May, citing mental Impact Statement (EIS) for Lease Sale
a lack of industry interest. However, the Inflation 258 in October 2021, and the DoI said a final EIS
Reduction Act calls for all previously announced and record of decision would now be published
federal offshore lease sales in Alaska and the US later this autumn.
Gulf of Mexico to be held during the next two Alaska has struggled to attract significant
years. Indeed, earlier in September, the DoI industry interest in recent years. The last Cook
reinstated the results of Lease Sale 257, which Inlet federal lease sale was held in 2017, with
had been held in the Gulf in November 2021 but Hilcorp Alaska the only bidder, paying over
was subsequently invalidated by a court in early $3mn for 14 tracts. The BOEM has previously
2022. (See NorthAmOil Week 37) cancelled lease sales in Cook Inlet citing a lack
Now the DoI is proceeding with Lease Sale of industry interest in 2007, 2008 and 2011.
258, which it is required to hold by the end of Nonetheless, industry supporters in Alaska have
2022 under the new legislation. The Bureau of argued in favour of new lease sales, citing chang-
Ocean Energy Management (BOEM), part of ing conditions and arguing that new natural gas
the DoI, will propose to offer up to 224 blocks on output in particular could be used to heat and
the Outer Continental Shelf (OCS). The blocks power much of the state.™

Week 38 22•September•2022 www. NEWSBASE .com P7