Talos Energy has reached an agreement with Repsol to acquire a stake in one of the projects on the Mexican coast. The deal is valued at $50 million. Under the agreement, Talos will receive a 50% interest in Block 29, which is located in the Salinas-Sureste Basin in the Gulf of Mexico. The company is obligated to pay $30 million after the final investment decision (FID) is made, as well as provide up to $20 million in funding for the next exploration well in this block and cover preliminary expenses.

The transaction is subject to approval by Mexican regulatory authorities.

Block 29 contains the Polok and Chinwol oil fields, with recoverable reserves estimated at over 200 million barrels of oil equivalent. Upon completion of the deal, Talos and Repsol will become the sole participants in the project, with Repsol retaining operatorship.

The final investment decision for Block 29 is expected to be made in 2027.

Previously, the British company Harbour Energy held a 35% stake in Block 29. Talos’s statement did not specify the current status of Harbour’s participation in the project.

It was earlier reported that Repsol plans to develop the Polok and Chinwol fields using a floating production, storage, and offloading unit (FPSO). The company confirms its intention to use an FPSO for Block 29. Talos also highlights the potential for FPSO deployment in this project, noting the possibility of creating a hub for future developments and new discoveries in the region.

Last year, Harbour became the operator of the Zama field, the largest undeveloped oil field in Mexico, with recoverable reserves of 750 million barrels of oil. The Zama field was discovered by Talos in 2017, and the company remains a junior partner in the project despite selling most of its stake in this asset.