Mexican oil reforms have continually advanced, this as a result, has enabled the private sector to acquire wells after 80 years of monopoly. For the record, this move will pave way for both local and foreign competitors to find their way into the Mexican energy markets. Premier Oil Plc., a London-based company, Sierra Oil and Gas from Mexico together with Talos Energy have already embarked on their first well drilling. This is the first private offshore exploration in Mexico besides Petroleos Mexicanos, a state monopoly.
The drilling process will last for a period of three months, at an average cost of $16 million. Zama-1 well in the Sureste Basin is rich with crude oil, approximated between 100 and 500 million barrels. The three companies were collectively awarded the rights to undertake the drilling in 2015. This followed the move of Mexican government to engage private industries in crude oil drilling.
The London premier and analysts collectively said the structure of the basin guarantees high chances of success in this geological project. Charlie Sharp who works as a professional analyst further said that Zama is a phenomenon when that seek high technological investments. Talos energy owns a stake of 35% in the venture. On the other hand, Sierra own 40% while Premier owns 25%. Talos Energy LLC is an oil and Gas Company, it is among the most successful companies focused in exploration, acquisition as well as exploitation of natural occurring crude oil and gas.
Talos Energy is particularly interested in the Gulf Coast and the Gulf of Mexico. In its operation, Talos Energy is closely backed up with other companies that include Apollo Global Management, LLC and Riverstone Holdings LLC among others. Ash Shepherd is the commercial manager at Talos Energy, following the reformations at Mexican Constitutional energy reforms, Ash Shepherd signed the first two production sharing contracts in 2013. This saw Talos Energy LLC, become the first foreign company to run in Mexico. Important to note also is that Talos acquired Energy Resource Technology, GOM, Inc. an oil and gas subsidiary of helix energy solutions Group Inc. for $620 million.
Find more information on Talos Energy on Facebook.