It’s been nearly eighty years since a private oil company has landed an offshore stake in Mexican waters. Now, in the nation’s quest to drive foreign interest into its domestic energy industry, a trio of companies have joined forces to begin drilling in Mexican waters.
London’s Premier Oil and the Mexico-based Sierra Oil & Gas are joining with Talos Energy to expand the offshore oil program which will be the largest exploration outside of state driven ventures in decades. Mexico nationalized their oil industry in 1938 and since that time no single company or combination of private entities have taken part in such a large oil exploration project and Talos Energy on Facebook.
The well, named Zama-1, houses upwards of 100 million potential barrels of crude. Rough estimates put the total volume at around 100 – 500 million barrels. Mexico awarded the contract in 2015, giving the trio of companies rights to drill the well. Expected to take around ninety days, the beneficiaries of this generous contract awarded by the Mexican government will have free range to drill at a cost of $16 million, paid by Premier Oil and more information click here.
The larger picture for Mexico is a long-range plan for energy reform. Considering the potential returns and high probability of success, the Zama-1 drilling project will be of keen interest to Mexican officials hoping to spark international competition in its energy market and learn more about Talos Energy.
Talos Energy, owner of 35% stake in the project, operates the well. Mexican-based Sierra Oil & Gas holds the largest share in the venture at 45% with Premier owning 25%. Talos Energy, based in Houston, Texas, already has a steady presence in the Gulf Coast and is looking to expand its influence in the Mexican oil market and their Website.
Talos Energy was the first foreign oil company to operate in Mexico since 1938, agreeing to two contacts with the Mexican government in 2013 after Mexico elected to open its oil industry to reform. Considered one of the best small businesses in the area, Talos Energy looks to expand their influence through profitable Mexican oil production sharing contracts.
Despite being considered a small company, Talos Energy relishes the big work and finds value in their small size. Talos believes that the personal touch of a small company gives them a distinct advantage and a chance to make a larger impact and http://www.reuters.com/article/mexico-oil-idUSL2N0ZX29420150717.