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    US-based Talos hobbled still from gulf storms


An oil spill in early September was attributed to the company’s operations.

by: Daniel Graeber

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Natural Gas & LNG News, Americas, Corporate, Exploration & Production, News By Country, United States

US-based Talos hobbled still from gulf storms

US energy company Talos Energy said October 12 that some of its production was still offline due to hurricane-related damage to pipelines and other facilities.

Hurricane Ida made landfall in Louisiana in late August as a category 4 storm, causing widespread and lingering damage to US refinery and production centres along the Gulf Coast.

Shell and Noble Corp., both reported damage to offshore installations. An oil spill off the coast of Louisiana, meanwhile, was blamed on Talos Energy in early September.

The company offered an update on its production guidance for the fourth quarter, adding about 4mn barrels of oil equivalent/day remained offline due to necessary repairs on pipelines and other downstream facilities.

“Talos expects the remaining impacted assets to return to production over the coming weeks and months as the third-party repairs are finalised,” the company said.

The company reported an average daily production of around 56,000 boe/d. That represents between 10,000 and 11,000 boe/d “of hurricane downtime compared to the company's projections for the quarter pre-hurricane,” Talos stated.

Production for the quarter was around 69% oil and 77% liquids. Talos said it realised an average price of $68/b for oil, $30/b for natural gas liquids and $4.50/mn ft3 of natural gas. All three are significantly below current market prices, with Henry Hub, the US benchmark for the price of natural gas, at around $5.50/mn ft3.