Back in 2015 the Mexican government announced that there would be a reconsideration of regulations concerning the country’s energy markets. The tepid move into a larger world of oil companies bidding for rights to drill invited many in what’s shaping up to be the energy story of the year.
One of the first companies to respond to this policy shift was a Talos Energy, a Houston-based oil and gas company that entered into a venture with UK energy company Premier Oil and Sierra Oil & Gas of Mexico. This partnership aggressively pushed for first rights to drill in Mexican waters. After more than a year of lobbying, Talos and company were able to secure a $16 million deal and became the first venture of private companies to use foreign money to explore in Mexican waters. It’s the first time any entity other than the government-owned Petroleos Mexicanos has drilled there in nearly 80 years.
Talos is confined to the Sureste Basin, located near Tabasc. There, the Zama-1 well is estimated to produce some 500 million barrels of crude oil. They have a total of 90 days to extract it all before their permit ends.
While Talos expects this to be a fruitful business venture, the energy company has also attracted the interest of speculators for even more reasons. According to London analysts with the Edison Investment Research, there’s increased interest in the changes to Mexico’s energy industry. A successful venture for Talos doesn’t just mean good business for the energy company, it signals a new environment that makes things more competitive for Petroleos Mexicanos in territory that still as much to be uncovered.
About Talos Energy:
Talos Energy is a oil and gas company headquartered in Houston, Texas. Talos is a leader in offshore exploration and the development of deep-water assets in and around the Gulf of Mexico. With experience working in a challenging region, Talos has been foremost in testing innovative technologies and developing new approaches to discovering energy.
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With over a decade of operations, Talos Energy has cemented its position as a leader in North American energy while also doing their part to maintain the integrity of the environment. With a stellar reputation and a growing resume of success, Talos Energy has consistently grown as a company by expanding their partnerships and business worldwide