In the recent past, Mexico has let private companies back to the energy industry. The oil sector in the country has not been doing so well. The move to include private firms is part of the procedure to turn around the industry. The year 2015 saw Mexico hold its initial bidding by private investors. As a result, three private companies grabbed the opportunity to drill a well in the Mexican waters. Since 1938 when the country nationalized the oil industry, no private company has ever had a chance to explore the waters. Petrelos Mexicanos, a firm operated by the government has been a monopoly in the sector. The well that started to be drilled in May this year will be the first ever to be done in the waters by private investors.
The Pioneer in the Industry
The oil well dubbed Zama-1 is a joint venture by three firms; Premier Oil Plc, which is based in London, Talos Energy LLC, which is based in Houston, and Sierra Oil & Gas from Mexico. Talos Energy LLC controls 35 percent in the venture and will be the well operator. Premier Oil Plc and Sierra Oil & Gas owns 25 percent and 40 percent respectively. The well, which is located in the Sureste Basin off the Tobasco State, is believed to take approximately 90 days to complete. It has an estimated capacity of between 100 million and 500 million barrels of crude oil. As first of its kind in the country, many eyes are on the well according to an analyst at Edison Investment Research. It is, however, believed that geologically, the rate to succeed is on the higher side. The way the basin is structured gives it a better chance of succeeding. Zama remains the most interesting investment in the industry so far.
About Talos Energy LLC
Talos Energy LLC is a privately-held oil and gas company situated in Houston. The company’s interests lie in offshore exploration. Its operations are concentrated in Gulf Coast and Gulf of Mexico areas.
Talos Energy LLC has adopted the state of the art technology in its operations. Investing in this technology has helped optimize its oil production. It has grown to be one of the largest energy firms in the industry as a result.
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