Talos Energy, a Houston based Oil and gas firm interested in oil and natural gas business in the Gulf of Mexico and the Gulf Coast, is among the foreign companies recently allowed to conduct business in Mexico’s energy sector particularly the oil and gas segment. Other international organizations include Premier Oil Plc. (based in the UK) and Italian company Eni. Talos Energy, Premier Oil, and a local oil and gas firm (Sierra Oil & Gas) pooled resources to drill the first private well in over 80 years; since the country nationalized its oil sector in 1938. Talos Energy owns 35 percent stake in the joint venture while its international counterpart owns 25 percent and the remaining stake belongs to Sierra Oil & Gas.
The recently formed partnership among the three firms is already open to business. In fact, the Zama-1 Well whose drilling began on May 21, 2017, is an initiative of the three companies. Prior to the commencement of drilling, Premier Oil addressed the media regarding the Zama-1 Well and its status in the venture. The UK based firm expounded that the Zama-1 Well is estimated to hold between 100 million and 500 million barrels of crude oil. At the same time, Premier Oil disclosed that it would make an initial contribution of $16 million to finance its stake in the venture and more
Apparently, the world has been waiting on Mexico to denationalize its oil sector if the sentiments from international analysts are anything to go by. The views held by Elaine Reynolds, a fellow at London’s Edison Investment Research, and Charlie Sharp of Canaccord Genuity Ltd, a global investment bank, speak to the expectation that the world has on the Zama-1 Well. The well will not only open up the Mexico’s energy sector but also determine the interest of other investors to be part of the country’s ailing energy sector.
Talos Energy’s status in the partnership is enviable; the company operates the well. The company which came to life just recently—in 2012— is in collaboration with well-established enterprises including the 83-year-old Premier Oil. Talos Energy’s success in Latin America is picking traction.