TALOS ENERGY VENTURES INTO MEXICAN WATERS
Since Mexico nationalized its oil industry in 1938, the country has seen no offshore oil exploration from a private company until May this year. Premier Oil Plc, Talos Energy LLC, and Sierra Oil and Gas have joined efforts to sink an offshore exploration well in Mexican waters.
Over the years, state owned Petroleos Mexicanos has been dominating the industry until lately when the country set to take a different direction and invite foreign investors to enhance competition in the energy sector. This was after Mexico voted to allow foreign investors to venture into their oil industry which had been deteriorating. Ash Shepherd who is Talos’ Energy commercial manager was the first to sign the first two productions sharing contracts after the historic Mexican reforms.
The three companies began digging the well which is situated at Sureste Basin on 21st May this year. It is estimated that the Zama-1 well about 100 to 500 million barrels of crude according to Premier Oil and the drilling may take up to 90 days to be completed.
The project which has been termed as the high geological chance of success has everyone watching closely given that it is the first one since Mexico opened up its waters for foreigners to explore. Houston based Talos holds 35%; Sierra holds 40% while Premier holds 25% of the joint venture.
Talos Energy is a private oil and gas company with its headquarters in Houston and is also affiliated with Apollo Global Management and Riverstone Holdings. Founded in 2012, Talos Energy specializes in exploration and production of offshore hydrocarbons. Their main areas of focus are the Gulf of Mexico and Gulf coast. In 2013, the company was named as the best work place among local businesses.
Besides their experienced and dedicated management team, Talos Energy makes use of the latest innovations and seismic technologies to explore and exploit deep waters. They are also committed to ensuring safe and environmentally friendly techniques during operations. Prior to founding Talos Energy in 2012, the management team had built and sold two companies; Gryphon Exploration and Phoenix Exploration.