Talos Energy is in the advanced negotiation stage to acquire EnVen, which owns oil and gas assets in the Gulf of Mexico, for approximately $1bn, reported Reuters, citing people familiar with the matter.
Talos is also looking to take over the debt of EnVen, which is backed by American private investment firm Bain Capital.
As per EnVen’s March 2022 presentation, the firm’s debt stood at $288m at the end of 2021.
A potential deal is expected to result in the creation of a bigger company, which would be in a better position to capitalise on surging crude oil prices.
According to the sources, a deal would see Talos acquiring either most of or all stock in EnVen.
The sources cautioned that there is no certainty that talks would result in the signing of an agreement between the two firms.
In May 2022, Talos CEO Tim Duncan said the firm is considering the acquisition of assets focused in the US Gulf of Mexico, in order to boost its production capacity.
EnVen is primarily involved in the development, exploitation, exploration, and acquisition of oil properties in the US Gulf of Mexico.
In a separate announcement, Mexican state-owned petroleum company Petroleos Mexicanos (Pemex) said it would invest in the 850-million-barrel Zama field located in US Gulf of Mexico, on the condition that its partner Talos Energy accepts Pemex as operator, reported Reuters, citing Pemex CEO.
The offshore field was discovered by Talos and its partners Premier Oil, and Wintershall Dea in 2017.
Last year, Mexico’s energy ministry (SENER) granted rights to Pemex to operate the field.