A private firm has transformed the Mexican oil industry by sinking new offshore oil for the first time in nearly eight decades. This step marks the nation’s commitment to attracting more foreign investors into its lucrative energy markets. Premier released an official statement in mid-May revealing that the joint venture of Houston-headquartered Talos Energy, London’s Premier Oil, and Mexico-based Sierra Oil &Gas embarked on the drilling process on May 21. This project marks the first offshore oil and gas exploitation to be started by a state-run firm called Petroleos Mexicanos since the nation opened its oil sector to investors back in 1938.
According to Premier, the state of Tabasco-based Zama-1 offshore well holds between 100 million and 500 million barrels of oil. The three companies have dedicated $16 million to the drilling process, which is projected to be completed within 90 days. The three firms won the rights to carry out the exploration and exploitation of the crude in 2015 after Mexico opened the dwindling oil sector to private investors. They won the project in the first phase of bidding. To know about Talos Energy click here.
Elaine Reynolds, who is a senior analyst at Edison Investment Research headquartered in London, said that the well would trigger the massive growth of the Mexican oil industry and make the country an investment hub. Reynolds added that the project has a high geological likelihood of success due to the favorable structure of the basin. Another analyst from the well-known Canaccord Genuity Ltd added that Zama well would create a tangible impact in the Mexican market if the drilling project becomes successful.
Talos Energy serves as the Zama well operator, and it holds a 35 percent stake in the joint venture. On the other hand, Sierra and Premier own 40 percent and 25 percent respectively.
What is Talos Energy?
Talos Energy, LLC, is a globally recognized oil and gas firm located in Houston, Texas. The company has invested hugely in the exploration and the exploitation of gas and oil properties mainly in the Gulf Coast and the Gulf of Mexico. Talos finances its operations by leveraging finances obtained from Riverstone Holdings LLC, Global Management, and Talos Management.
Their Facebook Page: https://www.facebook.com/talos.energy/