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Talos’ Gulf of Mexico operations returning to normal after hurricane

 

 

 

 

By Offshore

HOUSTON
Petroleumworld 10 13 2021


Talos Energy Inc.’s Gulf of Mexico oil and gas production averaged between 56,000 and 56,500 boe/d during 3Q 2021, including several weeks of shut-in production resulting from Hurricane Ida.

That represents between 10,000 and 11,000 boe/d of hurricane downtime compared to the company’s projections for the quarter pre-hurricane. The production for 3Q was about 69% oil and 77% liquids.

According to the company, production disruptions following Hurricane Ida were prolonged due to complications affecting third-party downstream service providers. Key refiners, crude oil terminals, and pipelines were not fully returned to operation for several weeks due to a mix of storm-related damage and lack of power.

The company said its assets did not experience significant damage and the majority have returned to normal operations. They produced an average of approximately 66,500 boe/d in the last week of September.

About 4,000 boe/d of production remains offline across various assets, primarily due to repairs being made to pipelines and other downstream facilities. The remaining impacted assets are expected to return to production over the coming weeks and months as the third-party repairs are finalized.

Despite these disruptions, the company said it expects production for 4Q 2021 to be between 64,000 and 66,000 boe/d. Also, it still expects to generate meaningful free cash flow for the full year 2021.

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