Mexico recently voted to allow foreign competitors back into their oil industry as an effort to improve their oil market. Houston’s Talos Energy, London’s Premier Oil, and Mexico’s Sierra Oil and Gas Company are teaming up on the Zama-1 well which is to begin drilling on May 21. This is the first offshore exploration in Mexican waters since the 1930s when Mexico nationalized the oil industry. Ever since, the market was controlled by the state monopoly Petroleos Mexicanos. It is a huge opportunity for these private companies to be allowed to participate on this revolutionary project.
The Zama-1 well is expected cost about $16 million for Premier Oil in total. It is located in an ideal location off the state of Tabasco in the Sureste Basin. This location is expected to be a prime spot due the structure and geography of the well and many analysts predict it will be a smashing success. There is an esteem 100 to 500 million barrels of crude oil in the Zama-1 well and it will take about 90 days for the entire exploration to be completed. Given the predicted success of the well, this exploration is a point of interest for many people and it is expected to completely turn around Mexico’s oil market. Talos Energy is the operator of the Zama-1 well and has a 35% stake in the project. Sierra Oil and Gas holds 40% and Premier has stakes in the remaining 25%.
Talos Energy is a privately owner company that is interested in the exploration of territory and the exploitation of new oil. Founded in 2007, this relatively young company is already making huge strides in the oil industry. In addition to the Zama-1 exploration, Talos Energy also recently acquired the Energy Resource Technology GOM, which was a subsidiary of the Helix Energy Solutions Groups. Energy Resource Technology recently had a huge success in their Wang exploration.
Due to these big moves on Talos Energy’s part, their CEO and President Tim Duncan believes they are ready to build a large E&P on the Gulf of Mexico and the lower Gulf Coast.
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