Mexico has not been allowing foreign competitors to explore its energy markets for the last 80 years. However, on 21st May, a joint venture was formed involving a London-based Premier Oil plc, Mexico’s Sierra Oil & Gas, and Houston’s Talos Energy and began drilling the well in Mexico. It is the first well in Mexico to be explored by any other firms that are not Mexican based. The oil wells in Mexico were solely being drilled by state-run monopoly Petroleos Mexicanos from the time Mexico nationalized her oil sector in 1938. The well that was awarded to the three companies is known as the Zama-1 well and is estimated to have a capacity of between 100 to 500 million barrels of crude oil. Zama-1 is located in the Sureste Basin off the state of Tabasco.
London-based Premier Oil plc, Mexico’s Sierra Oil & Gas, and Houston’s Talos Energy are expected to spend around $16 million in the drilling process that should take approximately 90 days to be complete. The three companies won the rights to the drilling prospect in the first of bidding in 2015 when Mexico decided to open its collapsing oil industry to the private companies or investors. The basin where Zama-1 well is located is believed to have a high geological chance of success.
About Talos Energy
Talos Energy LLC is a private upstream oil and gas firm. The firm mainly focuses on the exploration as well as the acquisition of both oil and gas properties particularly in the Gulf Coast and the Gulf of Mexico. Talos Energy LLC gets funding from the Riverstone Holdings, Talos management, and Apollo Global Management among others. Talos Energy LLC is estimated to own over 33,000 square miles of 3D seismic data that has concealed the entire acreage in the company’s portfolio.
The company’s technical team has also reprocessed the 3D data to enable the firm to optimize its drilling inventories as well as evaluating joint venture opportunities. Talos Energy tries to encourage an independent as well as entrepreneurial spirit and style among the employees to realize its business goals in the oil industry. Besides, the company has a hardworking and transparent team that has significantly contributed towards the company’s success.