TotalEnergies SE (NYSE:TTE) inked a deal to acquire Talos Energy Inc.’s (NYSE:TALO) Low Carbon Solutions (TLCS) for $148 million.

The amount includes a purchase price of $125 million, along with customary reimbursements, adjustments, and retention of cash.

The sale includes Talos’s entire carbon capture and sequestration (CCS) business, which comprises its three projects along the U.S. Gulf Coast: Bayou Bend CCS LLC, Harvest Bend CCS LLC and Coastal Bend CCS LLC.

The transaction was based on an effective date of January 1, 2024, and closed on March 18, 2024.

Talos President and Chief Executive Officer Timothy S. Duncan stated: “Strong market interest during our capital raise provided the strategic option to fully monetize the business to TotalEnergies, an established global leader in CCS development….The transaction will further enable Talos to prioritize cash flow generation and optimal capital allocation in our core Upstream business.”

After the deal is completed, TotalEnergies will have a 25% share in the Bayou Bend project, alongside Chevron Corporation (NYSE:CVX) (50%, operator) and Equinor ASA (NYSE:EQNR) (25%).

Bayou Bend project is a CO2 storage project located along the Texas Gulf Coast, close to Total Energies’ regional assets.

TotalEnergies will also own a 65% operated interest in the Harvest Bend (Louisiana) project and a 50% interest in the Coastal Bend (Texas) project.

TotalEnergies plans to divest its interest in Coastal Bend and Harvest Bend projects after closing, as they are located farther away from its other existing assets.

Apart from this, TotalEnergies plans to join seven major companies to create an international coalition supporting the development of production and use of e-natural gas (e-NG).

In particular, the company is partnering with ENGIE Brasil Energia SA (OTC:EGIEY), Mitsubishi Corp. (OTC:MTSUY), Osaka Gas Co., Ltd (OTC:OSGSY), Sempra Infrastructure, TES, Tokyo Gas Co., Ltd. (OTC:TKGSY), and Toho Gas Co., Ltd. (OTC:THOGF) to establish the “e-NG Coalition”.

Stéphane Michel, President, Gas, Renewables & Power at TotalEnergies, said, “As a major player in LNG and renewable electricity, and as e-NG pioneers thanks to our Live Oak project, it is important for us to contribute to the establishment of a global coalition for the development of e-NG.”

Price Action: TTE shares are flattish at $68.11 premarket on the last check Tuesday.

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