There is a new breed of leadership in the country of Mexico, and it is evidenced by their willingness to allow new, foreign companies into their oil fields. Competition has always been a good thing, because sure enough new advancements will inevitably come. Talos Enery is one living testimonial of that important concept, and they have just emerged in a mighty way as one of the leaders in Mexico’s oil reform.
First the first time in eight decades, a private company has sunk a new offshore oil well in Mexican waters. They made the stunning announcement last May, and it was a joint venture between London-based Premier Oil, Houston’s Talos Energy, and Mexico’s Sierra Oil and Gas. Previously, the oil and gas exploration activities of Mexico were wholly reserved for Petroleos Mexicano, a company that had placed a monopoly on Mexico’s oil drilling and exploration since Mexico nationalized oil activities in 1938.
The Zama-1 well is in the Sureste Basin in the state of Tabasco and holds an estimated 100 million to 500 million barrels of crude. Drilling will likely take up to ninety days to complete, and the three companies of Premier Oil, Talos Energy and Sierra Oil and Gas all won the right to work on the project. The activity will come at a cost of $16 million, and many engineers are excited at the prospect of drilling in the Zama-1 for a variety of reasons.
First of all, the well has an extremely high geological chance for success. Secondly, Talos Energy owns a large 35% stake in the venture, and finally it has developed a good reputation among engineers in the area as well.
Talos Energy is the operator of the well, and they have developed a solid reputation over the years for getting the job done right. They were established in 2012 and they have hit the ground running ever since. Located in Houston, they own over 33,000 square miles in their portfolio. They realize that the more tools in their arsenal, the better chances they have to optimize their oil holdings and fill the world’s energy needs.