Talos Energy Inc. and Talos International Holdings SCS v. United Mexican States

Case summary

At a glance

Parties: Talos Energy Inc. (United States), on its own behalf and on behalf of Talos Energy Offshore Mexico 7, S. de R.L. de C.V., v. United Mexican States (the case record also lists Talos International Holdings SCS as a claimant)
Forum and rules: Notice of intent under USMCA Chapter 14 (Articles 14.D.3(2) and 14.E.1)
Treaty: United States-Mexico-Canada Agreement (USMCA), Chapter 14
Sector: Offshore energy
Outcome: Only the notice of intent is published. The documents do not show whether arbitration followed or how the dispute ended.

The dispute

On 3 September 2021, Talos Energy Inc., a Delaware corporation with its headquarters in Houston, Texas, gave Mexico written notice of its intent to submit a claim to arbitration under Chapter 14 of the USMCA. It acted on its own behalf and on behalf of Talos Energy Offshore Mexico 7, S. de R.L. de C.V., a Mexican enterprise it owns and controls. Talos alleged that Mexico breached its obligations under USMCA Chapter 14. It said it was sending the notice with a view to resolving the dispute amicably through consultations. Only the first page of the notice is readable, so the published text does not show the measures complained of, the specific treaty breaches alleged, or the relief sought.

Key holdings

No decision has been published. Talos gave notice of intent under USMCA Articles 14.D.3(2) and 14.E.1, claiming to be an investor of a Party under Article 14.1. It sought consultations before any arbitration. Notice of Intent ¶¶ 1–2