Following the Constitutional Energy Reforms in Mexico in 2013, foreign competitors are now allowed to drill in Mexican waters. The first project after this act was pushed forward is the Zama-1 exploration. It is a joint venture by three companies: Houston’s Talos Energy, London’s Premier Oil, and Mexico’s Sierra Oil and Gas Company. This is the first time in almost 80 years that a private company has been involved in the drilling of an offshoot well in Mexican waters. This is effort by Mexico to improve their failing oil industry. Ever since the country of Mexico nationalized its oil industry, all explorations in Mexico were controlled by the state run monopoly Petroleos Mexicanos.
The Zama-1 well is predicted to be a huge success due to this physical structure and geological location. It is expected to hold 100 million to 500 million barrels of crude oil and it will take about three months for the project to be completed. Premier Oil estimates the venture will cost them around $16 million to undergo. Since this is the first well to be drilled by private companies, it is going to be very interesting to see how it plays out. Many people believe the well will be huge success for everyone involved, and additionally be very beneficial to Mexico’s oil industry. Sierra Oil and Gas holds the largest stake at 40%, Premier has 25%, and Talos Energy has 35%. Talos Energy is also the operator of the well.
Talos Energy is private oil and gas company located in Houston. Their main focus is on the exploration of new territory and exploitation of oil and gas in the Gulf Coast and Gulf of Mexico. They are known to be one of the best places to work in the Houston area because every employee gets a piece of equity in the company.
They recently acquired Helix Energy Solutions Group which their CEO and president, Tim Duncan, believes will be hugely beneficial int heir progress toward creating a large Oil company on the Gulf Coast and Gulf of Mexico. Helix Energy Solutions Groups has been successful itself thanks to their recent Wang exploration, and now that it has been acquired by Talos Energy this company will see huge strides in their progress toward the future.
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