A private company has been given the go-ahead to sink a new offshore oil well in the Mexican waters. It is one of the latest indications of allowing foreign competitors into the energy markets of Mexico. The development comes 80 years since the same was made illegal in the country’s energy sector.
The first step in realizing the success of the venture was the joint initiative by three leading international oil drillers. The leading drillers are the London-based Premier Oil Plc, Mexico’s Sierra Oil and Gas and the Talos Energy LLC. The early offshore explorations had previously been carried out by the state-run monopoly Petroleos Mexicanos, right from the year 1938 when the oil industry was nationalized.
The Mexican offshore oil & gas capacity
Premier Oil stated in a statement that the Zama-1 well in the Sureste basin holds an estimated 100-500 million barrels of crude oil, which will take up to 90 days to drill at the cost of $16 million. The rights to prospect and drill were accorded the three companies in 2015, to fulfill the country’s energy reform process. Talos Energy is the lead operator of the well and owns up to 35 % of the total shares. Sierra holds 40% while Premier holds 25 % of the shares.
The Talos Energy Plc
Talos Energy Plc. is a privately owned upstream gas and oil company, headquartered in Houston. It has interests in the prospecting, exploration, acquisition, and exportation of oil. Most of its focus in the oil and gas industry is in the Gulf of Mexico as well as the Gulf Coast. The Talos Energy is well affiliated with the Apollo Global Management, LLC, Talos Management and the Riverstone Holdings LLC.
Talos Energy acquired the oil and gas producing subsidiary of Helix Energy Solutions for a total cost of $620 million. More projections on its capacity to raise revenue indicate that it has the potential to rise between $470-500 million in profits. Therefore, the prospects of growth and making new acquisitions are higher than before. The company is proud to have a result-oriented workforce at the command of the management. Every move is closely monitored since any mishap can lower the overall value of the Talos Energy profits potential and revenue margins.