March 18 (Reuters) - U.S. oil and gas producer Talos

Energy ( TALO ) said on Monday it will sell its carbon capture

and sequestration unit to French firm TotalEnergies

for about $148 million.

The sale, expected to close later in the day, includes its

three projects along the U.S. Gulf Coast.

Talos intends to use the proceeds from the sale to

immediately repay borrowings under its credit facility and other

corporate purposes, it said in a statement.

Talos is entitled to additional future cash payments upon

achievement of certain milestones or upon a subsequent sale of

these projects by TotalEnergies, it said.

"The transaction will further enable Talos to prioritize

cash flow generation and optimal capital allocation in our core

Upstream business. We are also continuing to explore business

development and strategic M&A opportunities," CEO Timothy Duncan

said.

Talos shares were up 2.3% in morning trade.

(Reporting by Vallari Srivastava in Bengaluru; Editing by Varun

H K)