US-based oil and gas company Talos Energy has agreed to sell a 49.9% stake in its Mexican subsidiary to Zamajal, a wholly owned subsidiary of Grupo Carso, for $124.75m.

Talos Mexico, the Mexican subsidiary of the company, holds a 17.4% stake in Zamam, which implies a minimum valuation of around $250m, with Talos remaining as the controlling shareholder.

Zamajal intends to pay an upfront payment of $74.85m at closing, with plans to pay the remaining $49.9m at the first production.

The transaction is expected to be completed within the third quarter of this year, subject to Mexico’s Federal Economic Competition Commission (COFECE) approval.

Talos president and CEO Timothy Duncan said: “We are thrilled to partner with Grupo Carso. Our relationship dates back to the 2015 offshore lease sales in Mexico.

“As we accelerate recent momentum and advance Zama toward FID and first production, we are confident that Carso is the right partner at the right time.

“Carso’s investment is a testament to the economic potential of Zama, and the joint venture will also benefit from Carso’s critical presence in Mexico and global commercial experience.”

In March this year, Talos announced that the Zama Unit Development Plan was submitted to Mexico’s National Commission of Hydrocarbons for formal approval.

Also, an Integrated Project Team (IPT) comprised of individuals from all four Zama Unit Holders was established to manage the development and operation of Zama going forward.

Talos said that it will co-lead the planning, drilling, construction, and completion of all Zama wells along with planning, execution, and delivery of Zama’s offshore infrastructure.

Duncan added: “This transaction establishes a baseline Zama valuation for Talos shareholders while providing material upfront cash proceeds.

“Most importantly, Talos shareholders retain significant valuation upside as we advance the project toward the first production.”