Talos Energy and Partners Drill First Mexico Private Oil Well in 80 Years

spcblog, 22 June 2017, No comments
Categories: Uncategorized

The Mexico stock market and oil sectors are bound to see dramatic changes after the Houston- based Talos Energy LLC, London’s Premier Oil Plc, and Mexican Sierra Oil & Gas drill the first private oil well in 80 years. Since 1938, the oil industry in Mexico has been under the strict state control, but due to legal changes that opened prospecting rights to private enterprises, the three companies in a joint venture got the approval to explore for oil in 2015.

Foreign Companies in Mexico Oil Sector

The offshore oil well that Talos Energy and partners are drilling in Mexico signals the readiness by the state to allow foreign companies active participation in the energy sector. In a press statement, Talos Energy indicates that the drilling process started on May 21. Previously, only the state-controlled Petroleos Mexicanos had the rights to deal in oil.

Talos Energy is a private company dealing in offshore oil and gas exploration with a keen interest in the Gulf Coast and Gulf of Mexico. Supported by Apollo Global Management and Investment Fund, Talos Management, and Riverstone Holdings LLC, the company will have the financial and technical skills to see the Zamia 1 project through.

Talos Energy started with $600 million. Today the company can boast of having more than 60 oil professionals and 120 field staff in the Gulf Coast up from 15 in 2016. Talos Energy LLC estimates that the offshore oil well known as Zama-1 holds approximately between 100 million and 500 million barrels of crude oil. The oil companies expect to take 90 days to finish prospecting for oil in the area located in the Sureste Basin off the Tabasco region while the process will cost $16 million.

The Benefits of Mexico Energy Sector Reforms

Already, there is a lot of excitement from economic analysts about the impact that the participation of foreign private corporates in the Mexico energy segment will create. Elaine Reynolds of London’s Edison Investment Research Ltd believes that Talos Energy’s venture has “a high geological chance of success.” “Economic analysts will watch Zama-1 given its effects on the Mexican market, and as the most important well drilled this year,” says analyst Charlie Sharp, of the Canaccord Genuity Ltd.

For more information follow Talos Energy on Facebook.

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