US independent Talos Energy said on 25 May it has sold a minority stake in its Mexican subsidiary to a unit of Mexico’s Grupo Carso for $124.75 million.
Grupo Carso will hold a 49.9% stake in Talos Energy Mexico. The subsidiary holds the company’s 17.4% stake in the planned Zama field development offshore Mexico.
“As we accelerate recent momentum and advance Zama toward FID and first production, we are confident that Carso is the right partner at the right time,” said Talos chief executive Timothy Duncan.
The acquisition, which is subject to the approval of Mexican regulators, is expected to close in the third quarter.
The purchase price of $124.75 million for the 49.9% stake, implies a minimum valuation of approximately $250.0 million for the full 17.4% stake in Zama, potentially increasing to $262.50 million if certain milestones are reached, according to Talos.
Carso will pay $74.85 million at closing, with the remaining $49.9 million due at first production, Talos said.
In March, Mexican state oil company Pemex and a consortium led by Talos Energy delivered the unit development plan (UDP) for the Zama shallow-water conventional oil development offshore Tabasco, Mexico, to National Hydrocarbons Commission.
Development of the 850-million-bbl field is shared by Pemex, Talos, and its consortium partners London-based Harbour Energy and Germany’s Wintershall DEA.
“Carso's investment is a testament to the economic potential of Zama, and the joint venture will also benefit from Carso's critical presence in Mexico and global commercial experience,” Duncan said.
He added that the transaction “establishes a baseline Zama valuation for Talos shareholders while providing material upfront cash proceeds. Most importantly, Talos shareholders retain significant valuation upside as we advance the project toward first production."
Zama will be developed to reach a production of up to 180,000 BOPD between 24 °API and 27 °API. This represents about 10% of the country's current oil production, Pemex said at the time the UDP was filed.
