In Mexico, for nearly 80 years all oil well searching, development, and drilling has been performed by the state-owned company. This has not worked out very well especially in recent years. Mexico has now allowed a privately held company the opportunity to sink an offshore oil well in their waters. This is the beginning of an initiative to bring foreign companies into the country’s energy markets and foster more competition.
This privately held well is a joint venture of three companies. The three companies that are involved in this partnership are from three different countries. Talos Energy LLC is headquartered in Houston, Texas while Premier Oil PLC is based in London. A Mexican company named Sierra Oil & Gas is also a partner in this project. The well they are sinking, named Zama-1, is inside of the Sureste Basin which is offshore from the state of Tabasco. It’s estimated to hold somewhere between 100 million to 500 million barrels of crude. Sinking the well is expected to take almost 90 days and should cost about $16 million.
An industry analyst, Elaine Reynolds, said that the oil industry is closely following this oil well sinking. It’s believed to likely be successful given the geology in the area. Another industry analyst, Charlie Sharp, said that Zama-1 is very interesting and one he will be intently following.
Talos Energy was founded by Tim Duncan and his partners in 2013. They started the firm with $600 million in equity and a focus on the Gulf of Mexico. The company has been credited as being a great place to work with good perks such as on-site childcare. Tim Duncan, who serves as the Chief Executive, has said that they have created a company environment where everyone works collaboratively in order to build the company up.
The Commercial Manager of the company, Ash Shepherd, was recently honored by Oil and Gas Investor as one of their “Thirty Under 40”. This was a reflection of his hard work in making Talos Energy the first foreign-owned operator in Mexico’s oil industry. He was the signer of the first two production sharing contracts that Talos Energy is a part of.
Read more about Talos Energy in this article.