<article><p class="lead">Talos Energy plans to sell a 49.9pc share in its Mexican subsidiary that includes the giant Zama shallow-water field to Grupo Carso, owned by Mexican billionaire Carlos Slim, for $124.8mn, the company said.</p><p>"As we accelerate recent momentum and advance Zama toward a final investment decision and first production, we are confident that Carso is the right partner at the right time," Talos Energy's chief executive Tim Duncan said yesterday.</p><p>Grupo Carso will pay $74.9mn at closing, with the remaining $49.9mn due at first production, while the total purchase price could increase to $262.5mn "if certain milestones are reached," Talos said.</p><p>Talos Energy discovered the giant Zama field of up to 950mn bl of oil equivalent (boe) in 2017 in its block 7 contract that neighbors acreage owned by state-owned Pemex in the southeast basin. But unitization negotiations with Pemex were fraught and protracted, ending last year with Pemex's designation as operator against Talos Energy's wishes.</p><p>But the company has sounded a more positive note in recent months following submission of the production plan and creation of an integrated project team that gives Pemex and the block 7 contract holders — Talos, Wintershall Dea and Harbour Energy — shared control over operational decisions.</p><p>"This transaction establishes a baseline Zama valuation for Talos shareholders while providing material upfront cash proceeds," Duncan said. "Most importantly, Talos shareholders retain significant valuation upside as we advance the project toward first production."</p><p>Talos holds a 17.4pc stake in Zama and will co-lead the planning, drilling, construction, and completion of all Zama wells as well as the planning, execution, and delivery of Zama's offshore infrastructure.</p><p>The Zama project is strategically important to Pemex amid the accelerated decline in oil and gas production as it will provide up to 180,000 b/d at its peak, or 10pc of current national output. No gas production estimates have been provided.</p><p>"We celebrate the agreement reached yesterday, particularly because it is with a Mexican company," President Andres Manuel Lopez Obrador said today. "Grupo Carso's participation is important because they have drilling rigs and so drilling will not take too long."</p><p>Grupo Carso already owns development rights for two small onshore blocks in Veracruz — both of which are in the exploration phase — but this would be the company's first foray into a major oil and gas project.</p><p>The sale is expected to close in the third quarter of this year.</p><p class="bylines">By Rebecca Conan</p></article>
