According to an article published by Bloomberg, a private company has for the first time in nearly 80 years sunk an offshore oil well in the Mexican waters. This is also said to be the last step in Mexico’s drive to allow back foreign competitors into its energy sector. The offshore oil well was discovered through the joint venture of Talos Energy LLC which is based in Houston, Sierra Oil and Gas based in Mexico and Premier Oil Plc which is based in London. The drilling was started on May 21st as reported by Premier Oil Plc. The offshore exploration well is the first to be launched in the country by another than Petroleos Mexicanos which is state-run monopoly. Petroleos Mexicanos has been the monopoly since 1938 when the country made its oil industry national.
According to a statement released by Premier Oil Plc, the well is known as The Zama-1 well and is located in the Sureste Basin which is off the Tabasco State. It holds approximately 100-500 millions of crude barrels. The drilling is said to complete in 90 days and will cost $16 million. It was back in 2015 when the three companies were awarded the rights to the prospect during the first bidding round. This was after the country voted to open its oil industry which was ailing to the private investment. Elaine Reynolds who serves as an analyst at the Edison Investment Research Ltd stated that the well which is the first non-Pemex to be drilled since the Mexican waters were opened will be watched keenly by the industry. She added that the entire project has a high geological possibility of success due to the basin’s structure. Charlie Sharp who serves as an analyst at the Canaccord Genuity Ltd stated that the Zama-1 well is among the most interesting exploration wells that have been drilled in this year.
An exploration and production company, Talos Energy is involved in the exploration, acquisition and development of oil and natural gas properties. The company mostly operates in the Gulf of Mexico Developed Deepwater as well as the Louisiana and Texas Gulf Coast.