Houston’s Talos Energy LLC entered into a partnership with Premier Oil Plc in London and Mexico’s Sierra Oil and Gas for a new off-shore well project- The first well sunk in Mexican waters by a private company in nearly 80 years. According to Bloomberg, the project began on May the 21st, and is the latest step for the Mexican government to allow foreign competition in their energy market.
In a recent statement by Premier the venture will be the first offshore exploration well to be launched by anyone other than state-run Petroleos Mexicanos since Mexico nationalized their oil industry in 1938. Somewhere between 100 million to 500 million barrels of crude are expected to be extracted from the The Zama-1 well located in the Sureste Basin near the Mexican state of Tabasco. Drilling is expected to be completed this summer at a cost of approximately $16 million dollars.
Mexico voted to revive their stagnant oil industry to private investment, and the partnership won the rights to the project in 2015. Talos Energy LLC will operate the well and holds a 35 percent share in the venture, while Sierra holds a 40 percent stake, and Premier with a 25 percent share respectively.
According to Elaine Reynolds, Edison Investment Research Ltd. anaylist, the project will be one of the first steps in Mexico’s energy reform process and has “a high chance of success.” Charlie Sharp, Canaccord Genuity Ltd. anaylist noted Zama-1 is one of the most interesting exploration wells to be drilled in the region.
The joint venture is a major step for Talos Energy LLC. With a rapidly expanding workforce, Talos Energy LLC has been selected by WorkplaceDynamics as one of the best workplaces in the Houston area. Talos is a partnership with Apollo Global Management and Riverstone Holdings to specialize in exploring and producing offshore energy in the Gulf of Mexico region.