May 21 was a monumental moment for oil companies. It was the start of the first oil well being drilled into the Gulf of Mexico since the Mexican government voted to allow private companies to drill. Before that, only Petroles Mexicanos, the government owned oil company, could drill in Mexico. This government policy has been in effect since 1938. However, in 2015, London-based Premier Oil Plc, Houston’s Talos Energy LLC and Mexico’s Sierra Oil & Gas won a join venture bid to enter the Mexican market when they changed their policy.
The three companies dropped the first well as an exploration well. They call the well Zama-1 and it can hold between 100 million barrels to 500 million barrels of oil at a single time.
Each of these three companies has a different stake in this joint venture. Talos controls 35% of the stake, Sierra 40% of the stake, and Premier has 25% of the stake.
Tim Duncan began Talos Energy after he split off from a previous company. He started with a stake in Mexico, $600 million, and a loyal workforce of 120. Tim Duncan has worked hard to get Talos recognized as a place worth working at. He has done this by allowing employees to get a piece of equity in the business. By doing this, he increases loyalty and accountability since if the business does well, they do well. Duncan is not against work day cares and Friday happy hours but they are just surface slush that does not produce any real change. Duncans’ efforts paid off when WorkplaceDynamics chose Talos Energy as this year’s best small business to work for. By placing something tangible and realistic in their hands, the employee will work harder to grow the wealth he has. To know more about Talos Energy click here.
Talos Energy will continue to grow in the future not that it has acquired Heliz Energy Solutions. This sent the company back $620 million, but it has already begun to pay itself off. Talos is already looking for another acquisition to keep the momentum. Their revenue is looking to be around $475 million.