A joint venture has set a precedent in Mexican waters by sinking an oil well, allowing foreign energy companies back into business. This development has broken a strong monopoly maintained by the Mexican state, long since the nationalization of the oil industry in 1938. Three leading companies: Premier Oil, Talos Energy and Sierra Oil & Gas undertook this project and swiftly began the drilling process on May 21st. Facing this first exploration led by an offshore venture, Petroleos Mexicanos’ is no longer the only entity to launch drills in the region. As reported by Premier, in the Sureste Basin, situated off Tabasco, The Zama 1 well is occupied by an estimated amount of 100 million to 500 million barrels of crude. Drilling is said to take up to 90 days before completion, costing Premier a budget of $16 million. This prospect occurred as a result of Mexico voting to offer its oil industry to private investment. Subsequently, the three companies secured their rights to this opportunity by winning the bid.
London based analyst, Elaine Reynolds at Edison Investment Research Ltd., has stated this venture will be keenly observed by the industry, as it is the first non Pemex drilling as part of Mexico’s energy reform process. She’s also suggested the structure of the basin indicates a high geological chance of success. Moreover, according to Charlie Sharp, an analyst at Canaccord Genuity Ltd., Zama is the most interesting project well to be executed in this sector of the year.In a statement by Premier, it is found that Talos being the operator of the well owns a 35% share in this undertaking, while Sierra and Premier hold 40% and 25% respectively.
About Talos Energy
Talos Energy is a privately run oil and gas company headquartered in Houston. It operates a self owned subsidiary, Talos Production after the successful acquisition of Energy Resource Technology, also known as Helix Energy Solutions Group (a oil and gas subsidiary) for $620 million.Tim Duncan, CEO and President of Talos Energy, and his partners started Talos Energy with $600 million in equity from assets in the Gulf of Mexico and other investors. The assets are said to have produced more than 16,000 barrels of oil per day, and were operated by a team of 60+ professionals in Houston. Talos Energy struck a deal with private equity giants, Apollo Management and Riverstone Holdings, in 2012, which raised the employee count from 15 to 120 employees.Among local businesses in Houston, Talos has been named the best workplace, by WorkplaceDynamics. Duncan has shared that the motivation behind his immense success came from his bosses’ willingness to always hear him out. From being a reservoir engineer manager to CEO of Talos, he has continuously sought to work hard. He encourages his employees to come up with ideas without holding them back.