Talos selected as high bidder for two deepwater blocks in US Gulf of Mexico

20 November 2020 (Last Updated November 20th, 2020 16:32)

US-based oil extractor Talos Energy has announced that it was the ‘apparent high bidder’ on two deepwater blocks in the Outer Continental Shelf Federal Lease Sale 256.

Talos selected as high bidder for two deepwater blocks in US Gulf of Mexico
Once approved, the blocks will provide an extra 11,520 gross acres for future exploration purchased at around $300 per acre. Credit: MustangJoe from Pixabay.

US-based oil extractor Talos Energy has announced that it was the ‘apparent high bidder’ on two deepwater blocks in the Outer Continental Shelf Federal Lease Sale 256.

The bidding process was held on 18 November.

Talos noted that it placed a sole bid on the Viosca Knoll 1000 and a joint bid with an affiliate of BP on Green Canyon 866 blocks.

Once approved, the blocks will provide an extra 11,520 gross acres for future exploration ‘purchased at less than $300 per acre’.

Talos Energy president and CEO Timothy S Duncan said: “We are happy with the results of our bidding efforts in the most recent lease sale, and look forward to adding the additional acreage and exploration prospects to our portfolio.

“The Viosca Knoll 1000 block contains a technically mature prospect located approximately five miles from the Talos-operated Ram Powell facility, greatly enhancing potential project economics due to the quick cycle time, short tie-back distance and 100% Talos infrastructure ownership.

“The Green Canyon 866 lease expands our collaboration with bp around the Puma West prospect area and offers low-cost option value in the event of a commercial discovery at the Puma West prospect.”

Recently, the Bureau of Ocean Energy Management (BOEM) in the US announced that Gulf of Mexico lease sale 256 has generated nearly $121m in high bids for 93 tracts covering around 79 million acres in federal waters.

In March, Talos Energy announced it will spend $170m less on capital and operating costs in 2020.