Talos Energy Gives Ida Related Production Update

Talos Energy Gives Ida Related Production Update
Production disruptions following Ida were prolonged due to complications affecting third-party downstream service providers.

Talos Energy Inc. (NYSE: TALO) has revealed that the company’s assets did not experience significant damage as a result of Hurricane Ida and that the majority of its operations have been returned to normal.

The company outlined that its assets produced an average of approximately 66,500 barrels of oil equivalent per day in the last week of September, adding that approximately 4,000 barrels of oil equivalent per day remains offline across various assets. This is primarily due to repairs being made to pipelines and other downstream facilities, Talos noted. The company said it expects the remaining impacted assets to return to production over the coming weeks and months as third-party repairs are finalized.

Talos highlighted that production disruptions following 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, Talos said.

The company’s preliminary estimated results for the third quarter of 2021 show an average daily production of between 56,000 and 56,500 barrels of oil equivalent per day, inclusive of several weeks of shut-in production resulting from Hurricane Ida. That represents between 10,000 and 11,000 barrels of oil equivalent per day of hurricane downtime compared to the company’s projections for the quarter pre-hurricane, Talos noted.

Despite disruptions, Talos said it continues to expect annual production near the lower end of its previously guided annual range and that it expects production in the fourth quarter of between 64,000 and 66,000 barrels of oil equivalent per day.

Talos notes on its website that it is one of the largest independent companies in the Gulf of Mexico, with operations across a range of deepwater and shallow water assets in both the United States and Mexico. The company regards Ewing Bank 305/306 and Main Pass 72 as its key assets in the U.S. Gulf of Mexico, Talos’ website shows.

The Bureau of Safety and Environmental Enforcement (BSEE) first activated its hurricane response team due to Ida on August 27 and issued its final update on evacuation and shut in production statistics for Hurricane Ida on September 23. At its peak, the hurricane shut in 95.65 percent of Gulf of Mexico oil production on August 29 and 94.47 percent of Gulf of Mexico gas production on August 31, BSEE figures show.

To contact the author, email andreas.exarheas@rigzone.com


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