Landmark Oil Venture Headed by Talos Energy Starts in MexicoJuly 10, 2017 - Author: steph - No Comments
Oil drilling happens every day all over the world – but not always by private companies involved in a joint venture. That’s certainly the case in Mexico, where the oil-drilling industry has been nationalized and not open to private, global companies since the 1930s.
But now that’s all changing. Gone are the rules of 80 years ago. Mexico has just struck a deal with two global, private partners—Talos Energy of Houston, Texas, and Premiere Oil of London, England. This is the first private partnership the two companies have forged together and the first to be struck with Mexico. Together with state company Sierra Oil and Gas, the three oil companies have begun drilling in a brand new oil well estimated to hold 500 million barrels of oil.
The estimated $16-million oil drilling venture began May 21 in the Sureste Basin, near the Mexican state of Tabasco. Primarily funded by Premiere Oil, which holds a quarter stake in the project, ownership is divided at 40 percent for Sierra and 35 percent for Talos Energy. Industry anlaysts have noted that the geological slope of the Sureste Basin make it ideal for drilling and extracting oil – and that in 90 days the outfit could produce between 100 and 500 million crude oil barrels.
Known as Zama-1, the oil well will be a landmark experiment hopefully setting into play more private partnerships with Mexican oil companies and driving global competition for Mexican oil.
What is Talos Energy?
Begun in 2012, Talos Energy has years of experience in the oil industry. Before establishing Talos in Houston, founder Tim Duncan successfully established and sold two oil companies that drilled throughout the Gulf of Mexico.
Talos is thrilled to be part of this historic global venture, and sees it as a sign of future opportunity for drilling in Mexico and working with global partners. The company produces more than 16,000 barrels of crude oil a day and has a long history in Mexico. Today, it has more than 100 employees on the ground in the country and another 60 in Houston headquarters.
For more information follow Talos Energy on Facebook.