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Latham & Watkins Advises Talos Energy on Divestiture of Talos Low Carbon Solutions

March 18, 2024
Firm represents Talos on divestiture of CCS business.

Talos Energy Inc. (Talos) (NYSE: TALO) announced that it has entered into an agreement for the sale of its wholly owned subsidiary, Talos Low Carbon Solutions LLC (TLCS), to TotalEnergies E&P USA, Inc. The transaction was based on an effective date of January 1, 2024 and will close later today.

The sale includes Talos’s entire carbon capture and sequestration (CCS) business, including its three projects along the US Gulf Coast: Bayou Bend CCS LLC, Harvest Bend CCS LLC (Harvest Bend), and Coastal Bend CCS LLC (Coastal Bend). Talos may realize additional future cash payments upon achievement of certain milestones at the Harvest Bend or Coastal Bend projects or upon a subsequent sale of these projects by TotalEnergies. Latham & Watkins previously advised TLCS on the development of the Harvest Bend CCS project. 
Latham & Watkins LLP represents Talos in the transaction, with an M&A team led by partner Justin T. Stolte, with associates Monika Kluziak, John Daywalt, Anji Yuan, and Chris Fanick. Advice was also provided on tax matters by partner Jim Cole, with associate Dylan White; on benefits and compensation matters by partner Larry Seymour, with associates Morgan Wesner and Joe Gu*; on intellectual property and data privacy matters by counsel Kieran Dickinson, with associate Kellye Quirk; on real estate matters by partner Robert Frances, with associate David Rao; on environmental matters by partner Joshua Marnitz, with associate Brian McCall; on antitrust matters by partner Jason Cruise, with associate Andrew Paik; and on regulatory matters by partner Kevin Chambers, with associate Matthew Crawford.

*Admitted to practice in Illinois only.