March 18 Reuters U.S. oil and gas producer Talos Energy 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 MA 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

Source Reuters