Talos Energy Partners with Shell to Acquire Deepwater Assets for $850M
Talos Energy (TALO) announced the execution of a definitive agreement to jointly acquire certain deepwater assets in the Gulf of America from Shell (SHEL) Offshore, alongside an affiliate of Ridgewood Energy Corporation, for cash consideration of $850M, subject to customary purchase price adjustments. Talos expects its final net cash consideration to be approximately $450M-$500M, based upon estimated interim cash flow from the acquired assets from the July 1, 2025 Acquisition effective date. The acquired assets include a 50% working interest and operatorship in the Coulomb field owned exclusively by Shell and a 25% non-operated working interest in the BP-operated Na Kika platform and four associated fields, including Kepler, Ariel, Fourier, and Herschel. Upon executing definitive agreements, Talos provided a deposit of $42.5 million in escrow, to be credited at close. Based upon estimated interim cash flow from the acquired assets from the July 1, 2025 Acquisition effective date, Talos expects its final net cash consideration to be approximately $450M-$500M, excluding the deposit. The working interests in the BP-operated Na Kika platform and associated fields are subject to a 30-day preferential right by affiliates of BP (BP), which, if exercised, would result in Talos only acquiring a 50% working interest and operatorship in the Coulomb field. First quarter 2026 average production for the interests Talos is acquiring was approximately 16 MBoe/d (77% oil). The acquired assets include approximately 23 MMBoe of proved reserves and probable reserves of 10 MMBoe, based on NSAI SEC year-end 2025 reserves report, net to Talos and net of P&A. Other commercial terms of the agreement include a 50% upside sharing agreement effective at closing through year-end 2027 subject to commodity-price-based thresholds if realized price exceeds $60/Bbl as well as certain other contingencies and agreements. The Acquisition is expected to close by the end of 2026, subject to customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the expiration of applicable preferential purchase rights with respect to applicable Na Kika interests.
