It’s been nearly 80 years since a new oil well has been opened for business in Mexico’s waters, but the government seems to be changing its stance on accepting new foreign players in the energy sector.
Talos Energy, a Texas based company, Premier Oil of London, and Sierra Oil, invested in this venture at 35%, 25% and 40% respectively, have partnered up to take advantage of this opportunity and began drilling in May of this year. These three companies lobbied for the rights to prospect for oil back in 2015 after Mexico first announced that it open to expanding its energy industry to private, even foreign, investment. It marks the first exploration of these waters by companies not affiliated with the Mexican government since 1938.
Operating in the Sureste Basin near Tabasco, the Zama-1 well is ikely to produce between 100 and 500 million barrels of crude oil. Though a conservative estimate, drilling efforts are expected to be ambitious. At present, operations are expected to endure 90 days and cost an approximate $16 million to complete.
Speculators see the addition of these companies to Mexico’s energy industry as a positive sign. According to analysts from Edison Investment Research, that this joint venture and those like it can engender the Mexican government to further opening its waters to drilling. This will make key players in the industry take note, including other government leaders, and that could translate to high growth in what’s already been seen as one of the most interesting developments in energy this year.
About Talos Energy:
Talos Energy is an oil and gas company that specializes in offshore exploration and production. They have spent years acquiring and developing shelf and deep-water assets in the Gulf of Mexico, applying cutting edge techniques and making use of new technologies.
Since its founding in 2012 Talos Energy has developed lasting relationships with others in the energy industry as well as national leaders. This has allowed them to expand into one of the major energy leaders in the world. This includes the development, and eventual sales, of companies like Gryphon Exploration Company and Phoenix Exploration Company.
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