11:21 AM EDT, 03/18/2024 (MT Newswires) -- (Updates throughout with details about TotalEnergies' plans for the projects after completion of the acquisition.)

Talos Energy ( TALO ) said Monday will sell its Talos Low Carbon Solutions subsidiary to TotalEnergies E&P USA for $148 million, including the purchase price of $125 million plus customary reimbursements, adjustments and retention of cash.

The company said it may realize additional cash payments upon reaching certain milestones at the Harvest Bend or Coastal Bend projects along the US Gulf Coast or upon a subsequent sale of the projects by TotalEnergies E&P.

TotalEnergies E&P is a unit of TotalEnergies SE ( TTE ) .

The transaction had an effective date of Jan. 1 and will close later Monday.

Talos said it expects to use proceeds from the sale to repay borrowings under its credit facility and for general corporate purposes.

After the deal closes, TotalEnergies said separately it will have a 25% stake in the Bayou Bend project, together with Chevron ( CVX ) , which holds a 50% stake and is the operator, and Equinor ( EQNR ) , which has a 25% stake.

TotalEnergies will also get a 65% operated stake in the Harvest Bend, Louisiana, project as well as a 50% stake in the Coastal Bend, Texas, project, it said.

As the Coastal Bend and Harvest Bend are farther away from TotalEnergies' other existing assets than the Bayou Bend is, the company plans to sell its stakes in the two projects after the deal closes, TotalEnergies added.

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