Mexico has recently shown intent in allowing foreign investors back into its energy industry. Three foreign companies Talos Energy, Sierra Oil and Premier Oil, began joint oil drilling activities in May. The three companies are from Houston, London, and Mexico respectively. This also marked the first time in about eight decades that a private company has sunk an oil well in Mexican waters. The joint venture is the first of its kind launched by a party other than the state-run Petroleos Mexicanos.
The new well (Zama) is located in Sureste Basin and is estimated to contain between 100-500 million crude oil barrels. This was according to Premier Oil’s statement. The company expected to spend $16 million on the drilling that was expected to take three months to complete. It was in 2015 that the three firms won prospecting rights after Mexico decided to bail out the collapsing oil sector. The ailing industry’s only way out was to hand it over to private investors.
According to experts, the new well takes center stage of its importance in the energy reform process that is taking place in Mexico. Based on the basin’s structure, the project can be described as one with a high geological probability of success. As it is Talos, Sierra and Premier hold a 35%, 40% and 25% stake respectively. The project is seen to be a momentous one in the oil industry this year.
About Talos Energy
Talos Energy is an American gas and oil exploration company that operates in the Gulf of Mexico and Gulf Coast. It was founded in 2012 by current President and CEO Timothy Duncan. He founded Talos with an equity raise of $600 million from Apollo Global Management and Riverstone Holdings.
The company boasts of a workforce of 120 employees, 60 of these being field operators and the rest Houston-based professionals. Talos has been recognized as having one of the best workplaces in among the local small businesses. This is owed to facilities such as on-site day care and happy hours on Friday. Talos also has part of its equity in the hands of its employees.