Talos Energy acquired a 50% interest in Repsol’s offshore Block 29, advancing deepwater discoveries Polok and Chinwol toward a planned 2027 final investment decision. The deal highlights accelerating private investment and strategic consolidation in Mexico’s upstream oil and gas sector, driven by major offshore players and expanding domestic conglomerates like Grupo Carso. This transaction directly impacts deepwater operators, joint venture partners, and energy sector investors navigating Mexico’s regulatory framework under SENER and COFECE.

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US-based Talos Energy executed a definitive agreement to farm into the Block 29 development located offshore Mexico in the Salinas-Sureste Basin, acquiring a 50% working interest from operator Repsol. 

Talos Energy said that under the terms of the agreement, it will make a contingent US$30 million payment upon reaching a final investment decision, fund a cash carry of up to US$20 million for the next exploration well, and reimburse specified pre-closing costs. Upon closing, Talos and Repsol will become sole partners in the block, each holding an equal 50% working interest while Repsol retains operatorship.

Located approximately 88km off the coast of Tabasco in water depths ranging from 460m to 600m, Block 29 includes the Polok and Chinwol oil discoveries. Originally awarded during oil tender Round 2.4, the block saw initial discoveries in May 2020 when Repsol drilled the Polok-1 and Chinwol-1 exploratory wells. Polok-1 reached a total depth of 2,620m and encountered a net oil column exceeding 200m, while Chinwol-1 was drilled 12km away to a total depth of 1,850m with a net oil column of over 150m.

Together, the two discoveries hold an estimated gross recoverable resource base exceeding 200MMBoe. The proposed development framework relies on a floating production, storage, and offloading vessel designed to function as a centralized hub for future regional exploration and nearby discoveries. Both fields target Miocene reservoirs analogous to deepwater assets Talos operates in the Gulf of Mexico.

Paul Goodfellow, President and CEO, Talos Energy, stated that the transaction advances Pillar Three of the company’s corporate strategy, focused on building a long-lived, scalable portfolio, by adding a deepwater development opportunity and exploration upside. He added that, combined with the company’s recent Gulf of Mexico bolt-on acquisition, the transaction is expected to extend resource life, support long-term value creation, and position Talos as a leading pure-play offshore exploration and production firm.

The transaction remains subject to customary closing adjustments and regulatory approvals from the Ministry of Energy (SENER) and the National Anti-trust Commission (CNA). The joint venture partners anticipate advancing the asset toward a final investment decision in 2027.

Grupo Carso Consolidates Private Upstream Leadership

The farm-in into Block 29 aligns with an upstream consolidation campaign by Grupo Carso across Mexico’s offshore basins. Through its energy investment vehicle Zamajal, the conglomerate controlled by Carlos Slim has built an expansive portfolio of exploration and production assets. Beyond its 80% controlling stake in Talos México, which holds a 17.4% participating interest in the Zama discovery alongside state oil firm PEMEX, Grupo Carso has moved to secure operational control of shallow-water fields.

In early 2026, Grupo Carso agreed to acquire Lukoil’s Mexican subsidiary Fieldwood México for US$270 million while assuming US$330 million in company debt. The transaction, coupled with its previous 2024 acquisition of PetroBal, gave the conglomerate full ownership of Contract Area 4, which encompasses the producing Ichalkil and Pokoch fields offshore Campeche. 

Furthermore, Grupo Carso finalized the purchase of TotalEnergies‘ 30% non-operated interest in Block 30, securing exposure to the KAN discovery estimated at 200MMBoe to 300MMBoe of light crude. Coupled with major integrated service contracts with PEMEX, such as a US$1.99 billion drilling campaign in the onshore Ixachi field, these capital deployments solidify Grupo Carso as the most active private domestic energy operator in Mexico.