Talos Energy Progresses on $1.7 Billion Worth of Offshore Drilling Projects in Gulf of Mexico

Researched by Industrial Info Resources (Sugar Land, Texas)--Talos Energy LLC (Houston, Texas) is chalking up progress on several major exploration and production projects in the deepwater Gulf of Mexico, with several wells brought online so far this year that have added millions of barrels of oil equivalent per day. In particular, last year's acquisition of Whistler Energy has boosted Talos' presence in the area south of Louisiana. Industrial Info is tracking more than $1.68 billion in active projects involving Talos Energy, all of which are in the Gulf of Mexico.

Click on the image at right for a map detailing active Talos projects tracked by Industrial Info in the Gulf of Mexico.

Talos recently announced progress at one of its largest projects in the Gulf of Mexico: the Zama program in Block 7 of Mexico's offshore Sureste Basin, where the third and final appraisal has been drilled. Talos is the operator of Block 7, in a consortium with Sierra Oil & Gas (Kassel, Germany) and Premier Oil plc (London, England); two other wells drilled in the first half of 2019 generated results that met or exceeded the consortium's expectations, according to Talos.

Industrial Info is tracking progress in the Zama program, including the estimated $400 million Zama Central Crude Oil and Natural Gas Production Platform in Block 2, which is designed to process 10 million standard cubic feet per day of natural gas and 50,000 barrels per day (BBL/d) of crude oil. The oil and gas produced at the platform would be delivered to Mexico's Port of Dos Bocas via an estimated $70 million natural gas pipeline and an estimated $60 million crude oil pipeline.

All three projects are in their planning phases, with construction scheduled to begin next summer, and will accommodate the consortium's planned, $45 million 2021 drilling program in Zama Field. For more information, see Industrial Info's project reports on the platform, gas pipeline, oil pipeline and drilling program.

"The match of the preliminary well data to our geophysical model suggests that we have a gross recoverable resource [at Zama] in the upper half of our pre-appraisal guidance range of 400 million to 800 million barrels of oil equivalent," said Timothy Duncan, the chief executive officer of Talos, in a press release. "With the collaboration of our Consortium partners, Pemex and the Mexican government authorities, we look forward to reaching [a final investment decision] as soon as possible and then turning our attention toward first oil."

In U.S. waters, Talos spud the Bulleit Oil Field Development offshore Louisiana in the last week of April, after it became the operator of the block earlier this year. Talos now owns 50% of the Bulleit project, which it plans to tie back to its Green Canyon 18 platform roughly 10 miles away, which Talos acquired as part of its acquisition of Whistler Energy in 2018.

Green Canyon 18 currently has a nameplate production capacity of 30,000 BBL/d of oil and 30 million cubic feet per day of gas, or about 35,000 barrels of oil equivalent per day of total capacity. Talos hopes to expand those numbers with an estimated $200 million exploration project, which would drill a new well and convert an existing well into production; the wells would be tied back to the Green Canyon 18 platform via an estimated $50 million pipeline. The project also would feature an estimated $30 million subsea infrastructure installation at a water depth of 1,200 feet. For more information, see Industrial Info's reports on the exploration, pipeline and subsea infrastructure.

Talos is preparing to begin construction early next year on the estimated $20 million Ewing Bank Area Drilling Program, south of New Orleans, Louisiana, in Block EW-305-A. The company plans to drill two wells, with production set to begin later in 2020. For more information, see Industrial Info's project report.

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