For over 80 years, a private company had not sunk a new offshore oil well in Mexican waters. However, recently Talos Energy LLC managed to take part which brought foreign competitors back into the energy markets. Houston’s Talos Energy, London –based Premier Oil and Sierra Oil &Gas formed a joint venture and started drilling the well. Since Mexico nationalized its oil industry in 1993, the joint venture was the first offshore exploration to be launched other than state-run monopoly Petroleos Mexicanos.
Premier stated in their statement that the Sureste-based basin off Tabasco State called Zama-1 well holds about 100 million to 50 million barrels of crude. 90 days is expected to be utilized to complete drilling at the cost of $ 16million. In 2015, the three companies in the joint venture won the rights to the prospect. They won after Mexico voted to launch an ailing oil industry to private investment in the first round of bidding.
The basin structure of Zama suggests a high geological chance of success. Elaine Reynolds, an analyst at Edison Investment Research Ltd., in London said that the well would be keenly watched. The well is the first non-Premix to be drilled. An analyst at Canaccord Genuity Ltd. stated that according to the Mexican Market, Zama is among the top impressive exploration wells to be drilled in the industry. Talos Energy owns a 35% stake in the partnership. Therefore, Talos is the operator, Premier holds 25%, and Sierra owns 40 percent.
Talos Energy Ltd is a private oil and gas company with years of experience in the offshore exploration and production industry. Before launching Talos Energy in 2012, the organization had built and sold two Gulfs of Mexico oil and gas industries, Gryphon Exploration Co. and Phoenix Exploration Co. recording positive results for Talos Energy Ltd.
Talos Energy Ltd is based in USA, Houston but mainly operates its assets in their business in south Louisiana areas and around the Gulf of Mexico and. Taos has won a vast array of contracts in Mexican Oil auction. With its professional employees, Talos hopes to improve on their drilling techniques through their expertise and extensive research being done.