Talos Energy: First Foreign Competitor In Mexican Waters In 80 Years

A well has just been placed offshore in Mexican waters. This is something that has not been done in nearly 80 years and is a result of Mexico’s decision to allow foreign and competing companies backing into their oil market. The well is collaboration between Mexico’s Sierra Oil and Gas, Talos Energy from Houston, and Premier Oil Plc from London. These are the first companies that are allowed access to Mexico’s oil field since the beginning of the county’s oil industry in 1938. Ever Since, it has been dominated by the Petroleos Mexicanos, a state run monopoly.

The well that they are digging is called Zama-1 and it reportedly holds somewhere between 100 million and 500 million barrels of oil. It will take around three months for the project to be completed and it will run Premier Oil about $16 million. According to Elaine Reynolds, Edison Investment Research analyst, the basin is likely to be highly successful due to its structure and location. Another analyst from Canaccord Genuity believes this project tis revolutionary for the energy market and it will be a point of major interest this year. Premier has a 25 percent stake in the company. Sierra has a 40 percent stakes and Talos has a 35 percent claim to the well. Talos is also the operator of the well.

Talks Energy has $600 million in backing and they are currently in possession of assets that are located in the Gulf of Mexico. Talos was recently given the honor of being award the best place to work out of small businesses in the area. They were given this honor by WorkplaceDynamics. They provide all their employees with a fair salary, but the big bonus is that each and ever employee is given a piece of equity in the company.

Talos Energy’s subsidiary, Talos Production LLC, acquired the Energy Resource Technology GOM, Inc. in 2013. The Energy Resource Technology GOM brings in an average of over 16,000 barrels of oil every day and the majority of these are oil-weighted. This is a big step for Talos because it follows the Energy Resource Technology’s success in the Wang exploration.

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