For more than eight decades that Mexico has been in the oil industry, no private company has sunk any oil well in its waters. However, the state changed this year when the country allowed private corporations to drill a new offshore oil well, in the bid of allowing foreign competitors to get back to the Mexican energy markets. The drilling was spearheaded by three renowned private companies including Talos Energy LLC which is based in Houston, Premier Oil Plc which is located in London, as well as Mexico’s Sierra Oil and Gas.
The step is to be considered bold, given that since Mexico nationalized its oil industry in the year 1938, no company has launched an offshore exploration other than Petroleos Mexicanos which is state run. One of the wells is known as Zama-1 well located in Sureste Basin off the state of Tabasco. It is estimated to have between 100 million to 500 million barrels of crude. In this area, the drilling is anticipated to take up three months to complete, the cost of the drilling is estimated to be $16 million.
To come up with the three companies, Mexico went to a vote. Within the first round of bidding the three companies won the rights. This being the first time that the oil industry is in the hands of the private companies, the whole oil industry will be on the look. According to analysts, the Zama-1 well is among the fascinating wells to be drilled this year. Talos Energy owns 35 percent of the operation of the well, Sierra holds a significant 40 percent while Premier has 25 percent.
Talos Energy is an oil and gas industry that was founded in the year 2012. It operates as an independent company. The company majors in exploring and producing offshore hydrocarbons in Mexico offshore. It was formed in collaboration with both Apollo Global Management and River stone holding, with the aim of buying assets in the Gulf of Coast as well as the Gulf of Mexico.
The management team of Talos Energy includes Phoenix Exploration and Gryphon Exploration. Since they have worked together for some time now, they have had a reputation of enhancing mature fields.