For the first time in over eight decades, a private firm has drilled an offshore oil well in the waters of Mexico. This is the latest phase in the country’s drive to become a favorable energy market where foreign competitors can invest in. A joint venture of Mexico’s Sierra Oil, Houston’s Talos Energy, and London-based Premier Oil started drilling on May 21st this year.
The Zama-1 well, located in Sureste Basin, Tobasco, is estimated to hold about 400 million barrels of crude. Completion of the drilling process is to take about three months and cost up to $16 million. The three firms won the mining rights in 2015. This was in the first bidding round after the vote favored the opening of the ailing oil sector to private investment by the Mexican government.
Elaine Reynolds, who is an analyst at Edison Investment Research, noted that the well would be keenly observed by the industry given that it is the first non-Pemex well that will be drilled since the Mexican waters were opened. Elaine added that the basin’s structure suggests that the project is likely to have a high geological opportunity of success. Charlie Sharp, Canaccord Genuity Ltd.’s analyst, also echoed Elaine words by emphasizing that Zama will be among the most exciting wells that will be drilled this year.
Talos owns 35% of the stakes and it’s the Well’s operator. Sierra and Premier hold 40% and 25% respectively.
About Talos Energy
Talos Energy LLC is a private-owned upstream oil and gas firm that is focused on acquisition and exploration of crude oil. The firm’s expertise is based on the acquisition of assets within the regions of Gulf of Mexico and Gulf Coast with an emphasis on exploitation, optimization, and exploration.
Being a cohesive group, the firm has been able to provide consistent positive results. Through this solid foundation, they have been able to continue to grow rapidly, and with a strong commitment to safety and environmental compliance.
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