Chevron has closed a $50 million deal that gives the US supermajor a 50% stake in the Bayou Bend Carbon Capture and Sequestration project offshore Texas.
The CCS project, launched by US independent Talos Energy and carbon capture company Carbonvert, could store 225 million to 275 million tonnes of carbon dioxide near Beaumont and Port Arthur.
Chevron announced earlier in May it would help expand the joint venture, marking its first CCS project in an entirely offshore environment.
The company acquired a 50% stake in the project for gross consideration of $50 million, which consists of $30 million gross upfront cash and up to $20 million gross capital cost reimbursement to Talos and Carbonvert.
Talos and Carbonvert will each maintain a 25% stake in the project, while Talos remains the operator.
While Bayou Bend CCS project covers about 40,000 acres, the three companies have also established an Area of Mutual Interest of a 231,000-acre offshore region for expansion opportunities.