Gulf of Mexico Carbon Capture and Sequestration Partnership Hub Announces Development of One of the Largest CO2 Offshore Storage Projects

Carbon-Zero US LLC, Cox Operating LLC, Crescent Midstream and Repsol are pleased to announce a partnership to develop one of the Gulf Coast's largest offshore hubs for the permanent storage of carbon dioxide.

Cox is among the largest owners of energy infrastructure in the offshore Gulf of Mexico and intends to repurpose facilities and equipment to lower the Carbon Capture and Sequestration project's carbon footprint during market-based energy transition. Cox's current leasehold consists of more than 600 wells in 66 offshore fields potentially containing the largest carbon dioxide storage volume owned by a single operator in the Gulf of Mexico.

Crescent Midstream, a Louisiana-based pipeline operator, has extensive onshore and offshore pipeline construction and operations experience in the Gulf of Mexico.

In conjunction with its CCS hub partners, Carbon-Zero recently submitted an application to the Department of Energy for the CarbonSAFE program for a pilot in one of their proposed carbon dioxide sequestration locations. The proposed project accesses offshore storage fields from Crescent and Cox's Grand Isle, Louisiana, facilities.

An initial FEED study has been completed by Crescent Midstream for a 110-mile carbon dioxide pipeline from Geismar to Grand Isle, utilizing existing Crescent pipeline rights of way.

Jerry Ashcroft, CEO of Crescent Midstream, said, "Crescent has the knowledge and experience to create and operate the vital connection between carbon dioxide emitters and sequestration providers. Crescent also has one of the lowest carbon footprints of any oil and gas company and will achieve carbon neutrality at the beginning of 2023."

Brad Cox, Chairman of Cox Operating and Carbon-Zero, said, "We are thrilled to be part of a market-based solution that is leading the way for CCS in the Gulf of Mexico. The way we see it is that CCS equals jobs."

David Ramos, Geological Low Carbon Solutions Director for Repsol, said, "Repsol is committed to advancing low carbon technologies such as carbon capture and storage as a necessary lever for achieving net zero emissions and driving the energy transition to a decarbonized model."

About Cox Operating, LLC
Cox Operating owns and operates assets in the Gulf of Mexico. Since 2004, the company has grown through enhanced development of production and reserves of existing assets along with strategic acquisitions. Cox Operating is active in both the Gulf of Mexico Outer Continental Shelf and in the waters of Louisiana. The company currently operates more than 600 wells from approximately 500 structures over approximately one million acres. These operated assets span from Texas to Florida. Cox is headquartered in Dallas, Texas, with operations in New Orleans, Louisiana, and Houston, Texas.

About Carbon-Zero US LLC
Carbon-Zero US, LLC was formed to accelerate energy transition projects on the Gulf Coast and elsewhere. Carbon-Zero is uniquely positioned with access to one of the largest assemblages of offshore structures, pipelines and leaseholds in the Gulf of Mexico operated by Cox Operating. Carbon-Zero's mission is to collect, transport and permanently sequester carbon dioxide from industrial emitters on the Gulf Coast.

About Crescent Midstream, LLC
Crescent Midstream aims to utilize its significant midstream infrastructure, expansive right-of-way access and operating presence to connect industrial carbon emitters to carbon sequestration sites both onshore and offshore to facilitate CCUS and storage along with enhanced oil recovery ("EOR") to further full development of the reserves that exist in federal waters of the United States. Environmental sustainability is a key pillar of Crescent's corporate strategy and Crescent is committed to leveraging its footprint to reduce greenhouse gas emissions in Louisiana. Crescent Midstream currently moves approximately 25% of the Gulf of Mexico crude oil output onshore, connecting to refineries in Louisiana and Texas.

About Repsol
Repsol is a global multi-energy company that is leading the energy transition with its ambition of achieving zero net emissions by 2050. Present throughout the energy value chain, the company employs 24,000 people worldwide and distributes its products in nearly 100 countries to around 24 million customers. The company is deploying an integrated model of decarbonization that combines all technological solutions to prevent and remove carbon emissions from the atmosphere, including carbon capture and storage, and has set a target to reduce the carbon intensity of its upstream activity by 75% in the period from 2021 to 2025.

Media contacts
Cox Operating, L.L.C.
Vincent Devito
vincent.devito@coxoil.com
214-420-7710

Carbon-Zero US, LLC
Ken Jackson
ksj@carbon-zero.us

Crescent Midstream
985-872-3100
info@crescentmid.com