Talos Energy of Houston, Sierra Oil and Gas of Mexico, and Premier Oil of London have joined forces work on the Zama-1 project. Following a vote in Mexico, it was decided that foreign competitors would be allowed back into Mexican waters in an effort to safe Mexico’s failing oil industry. After a round of bidding, the three companies mentioned above were awarded with the honor of participating in this entire which is to be called Zama-1. This is the first time the state run monopoly Petroleos Mexicanos will not be in charge of oil explorations in Mexico since the late 1930s when the oil industry was nationalized.
Zama-1 is located in the Sureste Basin and considered to be in a prime location to be highly successful. It is thought to hold anywhere from 100 million to 500 million barrels of high quality crude oil. The duration of the project will not exceed three months and it will cost about $16 million to undergo the exploration. This venture is a key point of interest for everyone in the oil industry since it has the potential to turn around the Mexican oil industry. Sierra Oil and Gas has the highest stake in the Zama-1 well at 40%, but Talos Energy is operator of the well and has a 35% claim in the venture.
Since the 1930s, Talos Energy is the first foreign operator to work in Mexican waters. Ash Shepherd was awarded the honor of being Oil and Gas Investor’s Thirty under 40 recipient. He is the commercial manager at Talos Energy for Mexico and it is thanks to him that the deal with the Zama-1 exploration went smoothly. He signed the first couple of production contracts immediately following the Constitutional Energy Reforms act which allowed foreign competitors back into the Mexican market.
Talos Energy recently acquired Helix Energy Solutions Group after its huge success in the Wang exploration. This new par to the company will allow them to make the advances they need in the oil industry. President and CEO of Talos Energy, Tim Duncan, firmly believes this will propel Talos forward and allow the company to achieve great success.
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