Talos Energy-led consortium created history by becoming the first private group entering the Mexican oil industry in the last 80 years. Houston-based oil firm collaborated with Premier Oil from London and Sierra Oil & Gas from Mexico to start their first offshore oil well drilling in the country. They began the drilling on May 21, and it is considered as an initial step of a great revolution Mexican oil industry was looking for long – bringing private and foreign players into the industry. Interestingly, this is the first offshore well by any private player in the country after the sector was nationalized in the year 1938 – exclusive for the state-run Petroleos Mexicanos until recently. The well “Zama-1,” located in the Sureste Basin near to Tabasco State, can churn out 100 to 500 million barrels of oil, per the press release of Premier.
It is further confirmed that the drilling may take up to 90 days and would cost close to $16 million. All the three players won the rights in the year 2015 in the initial round of bidding when the country decided to go for private investment in the sector. Elaine Reynolds of Edison Investment Research confirms that considering the private players in the industry after long years, everyone is keenly watching the progress of Zama-1. An analysis on the basin shows that the project has a better geological chance for success. In the consortium, Talos holds 35% stake, Sierra owns 40%, and Premier gets 25%.
Talos Energy is a privately held oil and gas firm focusing on exploration, including acquisition, of oil and gas reserves in the Gulf Coast and the Gulf of Mexico. It was founded in the year 2012 and has gained greater expertise and significant experience in offshore exploration within a short span of time. The company uses modern seismic technology combined with high-quality and safe drilling process to ensure optimized exploration from the fields.
It also has a strong commitment to nature and implements safe and environment-friendly operations throughout its processes. Talos is known for its community involvements and offers a $500 allowance to each of its employees, and that can be contributed to any non-profit group by the employee as per their choice.