For the first time in 80 years, the Mexican government has allowed private oil firms to launch offshore exploration and drilling, a move that allowed foreign competitors to venture into the energy industry. The joint venture that began drilling recently are Mexico’s Sierra Oil & Gas, Houston based Talos Energy LLC and Premier Oil Plc, which is based in London. The Zama-1 well is estimated to hold between 100 million to 500 million barrels of crude, according to a statement released by Premier. It is expected that the drilling will be concluded in three months time, and cost about $16 million. The three firms won the contract two years ago, after Mexico voted to allow private investors to venture into the oil industry in the country.
According to Elaine Reynolds, a financial analyst based in London, said the drilling was very critical, and would be watched closely by industry players around the globe. He further added that the nature of the basin where the exploration was happening had high chances of succeeding. Talos Energy LLC, owns 35% of the venture and is the operator, while Sierra holds 40% and Premier 25%.
About Talos Energy LLC
A few years ago, Talos Energy LLC announced that its affiliate, Talos Production LLC had finalized an acquisition deal of $620 million for Energy Resource Technology GOM, Inc. (ERT). The assets of ERT averaged more than 16,000 barrels of crude oil per day. According to Talos Energy’s President and CEO, Tim Duncan, said they were delighted to have concluded such a deal, which would enable them reach an important milestone in their operations.
Talos Energy is a private oil and gas firm headquartered in Houston. Its main areas of operations are exploration and acquisition of oil and gas fields, especially in the Gulf Coast and Gulf of Mexico. The company is backed by portfolio of funds affiliated with Riverside Holdings, LLC and Apollo Global Management, LLC and Talos Management. Talos has an elaborate, dynamic and entrepreneurial culture that is result-driven. The company is committed to corporate social responsibility, where every employee is offered $500 to support non-profit organizations of their choice.