Talos Energy Drills its First Oil Well in Mexico

Talos Energy and Premier Oil are among the international oil & gas firms revamping the Mexico’s oil and gas industry. The sector which has been under the monopoly of Petroleos Mexicanos (Pemex) for over 80 years began deteriorating from 2007. In 2013, the country’s leadership instituted a constitutional amendment, energy reform, which was signed into law eight months later. The bill allowed foreign firms back into the Mexico’s oil & gas industry.

The Zama-1

This is the first non-Pemex oil well since 1938 when Mexico nationalized oil industry. The well is located in the shallow waters of the Gulf of Mexico specifically the Sureste Basin off the state of Tabasco, and it is a joint venture of Premier Oil, Talos Energy, and Mexico Sierra Oil & Gas Company.

In May, Premier Oil (an independent UK oil and gas company) issued a statement regarding the Zama Well. According to Premier, drilling of the Zama Well would commence on May 21, 2017, and reach completion after 90 days. Premier suggested that the well holds over 500 million barrels of crude oil. It would cost Premier over $16 million to fund its 25% stake in the venture.

The announcement of the Zama-1 Well drew the attention of pundits from all over the globe. Elaine Reynolds of Edison Investment Research suggested that owing to the structure of the rocks around the Zama Well; the project had “a high geological chance of success.” Charlie Sharp of Canaccord Genuity noted that the success or lack of it thereof of the Zama Well had huge implications on the Mexico’s oil sector.

Talos Energy

Talos Energy is an upstream oil & gas company headquartered in Houston, Texas, and was founded in 2012. The private company is the brainchild of Tim Duncan (the CEO) and other like-minded individuals interested in the exploration, development, and production of oil and natural gas in the Gulf Coast and the Gulf of Mexico. The company is backed by investment funds affiliated with Apollo Global Management, Riverstone Holdings, and Talos management.

Talos Energy is known for the value it attaches on its employees. In fact, the company gives equity to all its staff members.

To Learn More : www.talosenergyllc.com/about-us/