Thanks to an attempt to revive its energy markets, Mexico officially voted to start allowing foreign competitors back into its waters. The first project to attempt this will be a joint venture of three different companies including Houston’s Talos Energy, Mexico’s Sierra Oil and Gas, and London’s Premier Oil. These companies won the rights to this project after Mexico opened a round of bidding for outside companies. This is the first time in 80 years that an oil exploration venture will be conducted by a company other than Petroleos Mexicanos, which is a state run oil monopoly. The well is going to be called Zama-1 and the drilling began on May 21. Since this is the first offshore exploration to be dug by foreigners, it is an object of much interest throughout Mexico. Many people believe it will positively impact their oil industry and be beneficial to everyone involved.
The Zama-1 well is thought to hold anywhere from 100 million to 500 million barrels of crude oil. It is located in the Sureste Basin outside of Tabasco and is thought to be the ideal location to collect a lot of high quality oil. Due to the geological location and physical structure of the well, analysts predict that the Zama-1 well will be highly successful. The entire process should take about three months to complete and Premier will have pay around $16 million for completion of the exploration well.
The Commercial Manager of Talos Energy pulled all the necessary strings to get his company involved in this revolutionary venture. He is the one who put his signature on the first contracts of production sharing just after Mexico voted to allow foreign competitors back into the market. Due to his role in scoring the company this position, he was awarded with the honor of being a Thirty Under 40 member.
Talos Energy also obtained Helix’s Energy Resource Technology GOM in 2013 after its success in the Wang exploration. The Energy Resource Technology company is expected to be a huge asset to Talos Energy’s growing presence in the oil industry and prepares them to build a well rounded oil company on the lower Gulf Coast and Gulf of Mexico.
Read more about Talos Energy in this article.