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operator and is responsible for fulfilling the Woodford Basin, located in McClain County, Bayou Bend CCS project
field decommissioning orders received from OK. EOG Resources is the well-site operator.
the US Department of the Interior’s Bureau “This acquisition was an opportunity for us offshore Jefferson County,
of Safety and Environmental Enforcement in to expand our position in the Mid-Con while
February 2022. helping the seller cash out on an overriding Texas
Petrofac has been appointed by PDC as royalty interest they had inherited many years
the Decommissioning Services Provider in a ago,” explained Jace Graham, RPR CEO and Chevron USA, through its Chevron New
contract valued at around $200mn in line with founder. “Our team was able to go above and Energies division, Talos Energy, through its
the BSEE estimated decommissioning cost. beyond to cure several nuances associated Talos Low Carbon Solutions division, and
With over two decades of large-scale with the override’s title that ultimately allowed Carbonvert announced today a memorandum
project execution experience and in-house a clean closing with the seller.” of understanding (MoU) for an expanded
well engineering capability, Petrofac will use “At Rising Phoenix we have the expertise, joint venture to develop the Bayou Bend CCS
its proven decommissioning programme gleaned from decades of underwriting offshore carbon capture and sequestration hub
management systems, tools, and processes to numerous oil and gas royalty transactions, currently held by Talos and Carbonvert.
deliver the programme. Its integrated local to help streamline the due diligence process, In 2021, a joint venture between Talos
team, working closely with its wider global especially in situations where there may be and Carbonvert (now known as Bayou Bend
decommissioning organisation and supply issues with the assets title or other ownership CCS) was the winning bidder for the Texas
chain partners, have plugged and abandoned complications ‘’ continued Graham. “It’s General Land Office’s (“GLO”) Jefferson
more than 600 wells and decommissioned understandable that sometimes people just County, Texas, carbon storage lease, located
over 100 facilities. don’t know where to begin with royalty in state waters offshore Beaumont and Port
PDC is an operator, focused solely on field title problems. That’s where our team of Arthur, Texas. The Bayou Bend CCS project
decommissioning, and led by an industry professionals come in to sort out the title site encompasses over 40,000 gross acres and,
experienced specialists with strong safety, defects so the mineral owner can sell their based on Talos and Carbonvert’s preliminary
regulatory, management and governance assets quickly and efficiently.” estimates, could potentially sequester 225-
track records, and a mission to deliver cost- Houston based EOG Resources is one of 275mn metric tonnes of carbon dioxide
efficient and environmentally optimised the United States’ largest natural gas and crude (CO2) from industrial sources in the area. The
decommissioning. oil production and exploration companies, Bayou Bend CCS lease is the first and only
The alliance has selected Danos, a leading with proved reserves in the US, China, and offshore lease in the US dedicated to CO2
Gulf of Mexico offshore services provider, Trinidad. EOG executes to keep the lowest sequestration.
for over 75 years to support field operations possible operating cost that is consistent Under the terms of the MoU, Talos and
and the decommissioning programme. With with strong environmental stewardship, Carbonvert would contribute the Bayou
nearly 2,500 employees, Danos has a proven performance, and safe, efficient operations. Bend CCS lease to an expanded joint
history of operational excellence and safe The RPR royalty acquisition process venture including Chevron in exchange for
operations. Their longstanding relationships includes an in-depth reservoir analysis by consideration of cash at closing and capital
in the Gulf of Mexico and comprehensive a third-party geological engineering firm cost carry through project FID. Upon closing
range of services positions them to provide with expertise in all US Basins. The third- of the joint venture, equity interests in the
the expertise needed for the programme. party research provides royalty owners peace joint venture would be 25% Talos, 25%
The project will be led from Houston, of mind and transparency in knowing the Carbonvert and 50% Chevron, and Talos
with the integrated alliance team using the valuation data used in the purchase offer would remain the operator.
latest digital software, including Petrofac’s formulation. “Since our establishment of Chevron
proprietary project management tool Turus™, RPR clients choose to sell their mineral New Energies, we have been consistent in
to deliver the decommissioning project with assets for many reasons including but our communication that partnership will
comprehensive dashboards, transparency and not limited to immediate financial need, be required to grow successful lower carbon
assurance. optimising tax benefits, funding retirement, businesses. This venture is an example of
PETROFAC, May 05, 2022 estate planning, estate liquidation, and the potential that partnering can have in
investment portfolio diversification. moving large-scale lower carbon projects
RISING PHOENIX ROYALTIES, May 05, 2022 forward,” said Chris Powers, vice president
MOVES of carbon capture, utilisation, and storage
(CCUS) for Chevron New Energies. “Talos
Rising Phoenix Royalties ENERGY TRANSITION and Carbonvert have worked to rapidly
advance this project, and as a priority project
announces another SCOOP/ Chevron, Talos and for Chevron in a key industrial area, we are
excited to contribute our experience and
Woodford Basin overriding Carbonvert announce capability to develop the leading offshore
carbon sequestration hub for the region.”
royalty interest acquisition proposed joint venture CHEVRON, TALON ENERGY AND CARBONVERT,
May 03, 2022
Rising Phoenix Royalties (RPR) reveals the expansion to enhance the
purchase of an overriding royalty interest
from an undisclosed seller in the SCOOP/

P14 www. NEWSBASE .com Week 18 05•May•2022