A privately owned company is entering Mexican waters to dig an oil well for the first time in nearly 80 years. Mexico voted to allow foreign competitors back into their oil market to combat its steady decline and three companies were awarded the honor of participating in this exciting venture. Houston’s Talos Energy, London’s Premier Oil Plc, and Mexico’s Sierra Oil and Gas are working together to drill the Zama-1 well.
The state run monopoly called Petroleos Mexicanos was previously in charge of all offshore exploration wells in Mexico, ever since the oil industry was nationalized in 1938. Since this is the first time an outsider has been allowed to participate, the Zama-1 well is object of attraction and many people are eagerly watching in order to see how this exploration pans out. The well is located in the Surest Basin which is just outside of the state of Tabasco. This location is considered to be a great spot due to its structure and geological location. Many analysts predict that the Zama-1 well will be a huge success for these reasons. It is also predicted to hold somewhere between 100 million and 500 million barrels of crude oil. It should take about 90 days to complete the exploration and drilling; the cost is going to be around $16 million for London’s Premier. Premier has a 25% stake, Sierra Oil and Gas has a 40% stake, and Talos Energy has a 35% stake.
Talos Energy is based in Houston, Texas and has the honor of the being the operator of the well. They have a small team of expert professionals who are compensated with a small piece of company equity, in addition to the traditional salary. They are known for their excellent employment policies and were recently awarded with being one of the best places of employment in the Houston area.
In 2013, Talos Energy obtained Helix Energy Solutions which is thought be a huge step toward their success in the oil industry. The CEO of President of Talos Energy, Tim Duncan, believes that the results of ERT’s Wany discovery will be hugely beneficial to the Talos company.
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