Talos Energy, LLC in part of a joint venture with London-based Premier Energy PLC and Mexico’s Sierra Oil &Gas, Inc. is on the road to the opening of the first private company managed oil well in Mexican waters in more than 80 years. The well, labeled ZAMA-1 is located in the Sureste Basin, which is off the coast of the state of Tabasco. The well drilling began on May 21, and is the first well to be launched by an entity other than the state-run Petroleos Mexicanos, a monopoly which controls all of the oils and natural gas resources, and has since the Mexican government nationalized the industry in the spring of 1938 and read full article.
The new well is drilled into a field that is estimated to contain between 100M and 500M barrels of crude oil, and possibly more. The cost of the drilling exercise is approximately $16M and is being carried by Premier. The consortium of the three companies won the drilling and prospecting rights in a contest in 2015 after Mexico, in light of its ailing oil industry being declared to be in a tenuous position at best, opened up the possibility of private investment. The rights were awarded in the first round of bidding and Talos Energy’s lacrosse camp.
Talos Energy, which is a closely held private company, will be the operator of the well and holds a 35% stake in the venture. The remaining stake is held at 25% for premier who is the primary funder and European distributor of the product of the well, and Sierra holds 40%. The group knows that as the first well to be drilled in Mexican waters that is not owned and managed by PeMex in more than eight decades, they will be closely watched by industry observers. Investment group managers at several organizations have stated that the project has a high probability of overwhelming success. If it is so, then this might very well be a good model for future ventures along the same vein. This is a great opportunity for the three companies in the group as well as a chance for Mexico to once again be able to take advantage of its abundance of rich natural resources for the betterment of its people and what Talos Energy knows.