Repsol Farms Out Half of Mexico's Block 29 to Talos Energy

Repsol is handing half of Block 29 offshore Mexico to Talos Energy, which agreed to take a 50% working interest in the deepwater licence. The block hosts the Polok and Chinwol oil discoveries.

Gross recoverable resources across the two discoveries are put at more than 200 million barrels of oil equivalent, Oil & Gas Journal reported.

Payment is tied to project milestones. A USD 30 million payment falls due only if Talos elects to move ahead with a final investment decision. The agreed terms also carry up to USD 20 million of Talos costs on the next exploration well.

Repsol keeps control of the licence. It remains operator after closing and holds a 50% interest, matching the Talos stake.

Block 29 spans 3,254 sq km and sits roughly 88 km off Tabasco, according to Oil & Gas Journal. Polok and Chinwol lie some 16 km apart, in water 460-600 m deep.

The partners expect work on the block to reach a final investment decision in 2027.

Before the farm-in can close, two Mexican authorities must sign off: the energy ministry, Secretaría de Energía (SENER), and the National Anti-trust Commission. Offshore Engineer OEDigital reported the terms of the transaction.

The milestone-based structure means the USD 30 million is contingent on the FID choice rather than payable at signing, and the well carry is capped at USD 20 million. Talos does not take operatorship under the deal.