Though it took almost 80 years, Mexico is finally letting foreign competitors back in its energy markets. On May 21, 2017 three oil companies from different parts of the world, Houston’s Talos Energy LLC, London-based Premier Oil Plc and Mexico’s Sierra Oil & Gas, began drilling a new offshore oil well in Mexican waters.
1938 was the year when Mexico decided to nationalized its oil industry. Since then there has only been one company, Petroleos Mexicanos, a state-run monopoly, that has done any offshore exploration in those waters.
According to a statement released by Premier, there is expected to be up to 500 million barrels of crude in the Zama-1 well. The good news is drilling will only take about 90 days and will cost Premier less than $20 million to complete.
Elaine Reynolds, an analyst at London-based Edison Investment Research Ltd., said this well is one that will be closely watched by the industry because it is the first non-Pemex well to be drilled since 1938.
Due to the way the Sureste Basin is structured, which is where the Zama-1 well is located, Reynolds believes this project has “a high geological chance of success.”
Talos Energy is the operator of the well and currently owns a 35% stake.
About Talos Energy
Talos Energy is an independent oil and gas company that has a great deal of experience when it comes to offshore exploration and production. They employ a team of experts who know how to use the latest technology to acquire, explore, exploit and optimize shelf and developed deepwater assets in the Gulf of Mexico.
And though the company was formed just 5 years ago, they have already managed to build a very strong track record.
To learn more about Talos Energy and the services they offer visit them online at www.talosenergyllc.com.