Talos Readies New Drilling Projects in Gulf, Expects Busy 2024

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Researched by Industrial Info Resources (Sugar Land, Texas)--Earlier this week, Talos Energy Incorporated (NYSE:TALO) (Houston, Texas) brushed off concerns surrounding an oil discharge in the Gulf of Mexico to focus on its growing footprint in the region, particularly the approaching startup of two drilling programs at recent deepwater discoveries. Industrial Info is tracking more than $1.1 billion worth of active and planned projects across the U.S. featuring Talos.

Click on the image at right for a graph detailing active and planned projects featuring Talos, by industry sector.

Last month, Talos, Occidental Petroleum Corporation (NYSE:OXY) (Houston) and other drillers halted about 62,000 barrels per day (BBL/d) of offshore production in the Gulf of Mexico, following an oil discharge near the Main Pass Oil Gathering Company's pipeline system near Plaquemines Parish, Louisiana. But after three weeks of investigation, no leak on the Main Pass line has been identified, and Talon said in a press release the incident will be "immaterial to its fourth-quarter 2023 results."

"The cause and source of the incident remain under investigation," said the U.S. Coast Guard in a December 5 press release. "The entire length of the main pipeline has been assessed to date, along with 22.16 miles of surrounding pipelines, with no damage or indications of a leak identified. Remotely operated vehicles and divers continue to reassess the main pipeline and surrounding pipelines as a sustained effort to locate the source of the suspected release."

Despite this setback, Talos recently reaffirmed its fourth-quarter 2023 operational guidance of 66,500 and 68,500 barrels of oil equivalent per day (BOE/d), with first production expected by the end of the year at its Lime Rock and Venice discoveries in the Ram Powell field, about 125 miles southeast of New Orleans. This puts both projects ahead of schedule, as their completion had been expected in first-quarter 2024.

Talos owns a 60% working interest in the Lime Rock and Venice developments, and began its $35 million drilling program at Lime Rock and its $35 million drilling program at Venice in August and September, respectively, with both to be tied back to the Ram Powell production platform via a nine-mile, $35 million pipeline for Lime Rock and a four-mile, $25 million pipeline for Venice. The platform is expected to produce between 15,000 and 20,000 BOE/d, with a potential field life of 15 years.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can read detailed reports on the Lime Rock and Venice drilling programs, and the Lime Rock and Venice pipelines, and can read a detailed plant profile on the Ram Powell platform.

The Lime Rock and Venice developments each will be supported by $25 million subsea infrastructure installations to allow production flow from the reservoir, while the Ram Powell platform will be supported by topside modifications to improve operations, including risers, an emergency shut-down valve, and connections for temporary pigging facilities. Subscribers can read detailed reports on the Lime Rock and Venice subsea installations, and the Ram Powell modifications.

At Ram Powell, Talos already is at work on the $10 million Well E drilling program, which involves a single well to be tied back to the platform before production begins in first-quarter 2024. Talos also is preparing to drill the $10 million Well F next year, with both wells to be tied back to the platform via 2.27-mile, $5 million pipelines. Subscribers can read detailed reports on the Well E drilling and pipeline, and the Well F drilling and pipeline.

Talos also is playing a role in the growing market for carbon capture and sequestration (CCS) technology with its 25% interest in the Bayou Bend CCS project along the Gulf Coast in southeast Texas, which is 50% owned by Chevron Corporation (NYSE:CVX) (San Ramon, California) and 25% owned by Equinor (NYSE:EQNR) (Stavanger, Norway). The project features nearly 140,000 acres of space for permanent carbon dioxide (CO2) sequestration and more than 1 billion metric tons of carbon storage capacity. Subscribers can read detailed reports on the onshore and offshore portions, and can learn more from Industrial Info's August 29, 2023, article - Equinor Acquires 25% Stake in Texas CCS Project.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for active and planned projects featuring Talos.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).