Mexico is silently seeing a silent revolution of oil exploration and refining in the recent years with the privatization of the energy sector. Long heard the playground of government firms – especially Pemex – Mexico allowed access to private and foreign players into the industry in 2015. The first major movement came from a consortium led by Talos Energy as it began the process of offshore drilling on May 21, 2017. Talos Energy from Houston joined hands with Premier Oil Plc, London and Sierra Oil & Gas from Mexico and formed a consortium to bid the project.
The well is named as Zama-1 well is located in the Sureste Basin near Tabasco State, and it is expected to generate 100-500 million barrels of oil. Interestingly, the drilling was expected to complete over a period of three months at an expense of $16 million. The consortium won the rights in 2015 during the first round of bidding process after the Government of Mexico decided to open doors for the private players.
Interestingly, the industry experts are keenly watching the outcome of the drilling as everyone expects the private players like Talos Energy would revive the petroleum and energy industry of the country. The initial analysis and structure of the basin point towards higher ecological chances of success. Considering the importance of the industry, Zama can make a deciding factor for the economy of the country as well. In the consortium, Talos Energy holds 35% stake, Sierra, 40%, and Premier, 25%, Premier confirmed in a recent statement.
Talos Energy is an oil exploration firm that looks for opportunities of possible investments in Gulf Coast and the Gulf of Mexico. The company is backed by a number of investment funds from Riverstone Holdings LLC, Apollo Global Management, and more. The firm was founded in the year 2012 with an investment of $600 million in the form of equity.
Interestingly, in the initial year, Talos Energy produced over 16,000 barrels of crude oil per day. In 2013, it acquired Energy Resource Technology GOM – an oil and gas firm of Helix Energy Solutions. Since then, Talos Energy displayed consistent growth in the market with added oil wells, exploration, business, and revenue.
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