Significant changes are taking place in Mexico’s oil industry. The country is taking a series of steps that will enable foreign companies to once again become involved in Mexican energy markets. A recent decision saw Mexico grant a private company permission to drill an oil well in the water’s off its coast. Private companies haven’t been allowed to do this in almost 80 years. The new well, which work began on May 21, is a joint venture of Mexican company Sierra Oil & Gas, Premier Oil PLC which is based in London and Houston’s Talos Energy LLC.
Mexico’s oil and gas industry was nationalized in 1938. Since then Petroleos Mexicanos, a state-run company, has been the only company involved in oil exploration in Mexico. The new well, Zama-1, located off the coast of the Mexican state of Tabasco in the Sureste Basin is estimated to contain a crude oil deposit of between 100 million and 500 million barrels. The well will cost Premier $16 million to drill and take about 90 days to complete. In 2015, the companies won prospecting rights in the first bidding round since Mexico decided to allow private investment in its oil industry.
Talos is the well’s operator. Sierra has a 40% stake in the venture, Talos has 35% and Premier has 25%. Among this year’s most interesting exploration wells because of its high geological chance to be successful, the project will be closely monitored by the oil and gas industry. It holds vast implications for Mexico’s oil industry.
Talos Energy LLC is a Houston, Texas based oil and gas company. Founded in 2012, Tim Duncan is president and CEO. The company’s focus is exploration, development and optimization of oil and gas assets using cutting-edge seismic technologies and innovative techniques. The management team has many decades of experience doing offshore shelf and deepwater asset acquisition, exploration, production and management.
A rapidly-growing, independent, world-class company, Talos Energy is known for its commitment to environmentally compliant, safe operations. Plus it uses new, better, more innovative operational techniques to build on its strong foundation and gain a competitive edge.
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