Mexico like any oil producing country decided to nationalize its oil 80 years ago. This means that the oil was fully owned by the government. It’s also the government that was also in charge of exploration, drilling, transportation and refinery of this precious commodity. However, the Mexican government has decided to privatize the sector. This means that the government allowed a private company to drill oil in the Mexican waters. According to a recent article by Bloomberg, the Mexican government took this step to attract foreign investors to support the country’s economy that had been ailing for some years now.
The Mexican authorities announced that this project would be implemented by three overseas companies that consist of Premier Oil Plc., Sierra Oil, and Gas as well as Talos Energy LLC. Premier has its offices in London while Talos energy is from the US city of Houston, Texas. The oil and gas drilling procedures are reported to have begun on 21st May. Sierra Oil & Gas is a Mexican firm. Before this process, the oil exploration and drilling in Mexico was conducted by Petroleos Mexicanos. The new oil well by these three companies is referred to as the Zama-1 well. This process is being carried out in Tabasco State. It’s estimated that the total oil and gas that can be drilled from this project is 500 million barrels of oil. According to a report released by the spokesperson of these three companies, the period that the drilling will take place is estimated to be around three months.
These three companies revealed that they had applied for this tender in the year 2015. Being the first project by overseas private investors, this project will be used to set standards that will be used in the future. Talos Energy enjoys a 35 percent ownership of this project. Talos Energy came into existence when Riverstone Holdings and Apollo Global Management decided to enter into a partnership. The firm was formed with the main aim of acquiring assets from companies based in Mexico.
It has a team of highly trained professionals that used to work for companies like Gryphon Exploration and Phoenix Exploration. At the moment, the company has an employee base of 150 employees.
For more information follow Talos Energy on Facebook.