The Talos Energy oil and gas company, lead by a professional management team with significant experience in offshore production as well as offshore exploration, has recently secured a deal with the Mexican government to help oversee the first privately owned oil rig to be constructed in Mexican waters in almost eight decades.
With a strong track record in regards to offshore oil production and a strong focus on oil and gas, Talos Energy has become specialists in the offshore exploration and production industries, as well as the development of deepwater assets and acquisition of exploitable assets to be optimized. In addition, the company has specializations in bleeding-edge seismic technologies as well as deepwater and offshore exploration. Their recent joint effort with other companies has the potential to pay significant dividends and could make history as the first privately owned oil rig in the past eight decades to be built and operated in Mexican waters.
As the most recent step in the country’s drive to increase foreign competition on their energy markets, and drive business back to Mexico, this venture marks the first time in nearly eight decades that private companies have been allowed to operate a brand new offshore oil well located in Mexican owned waters.
As a joint operation between Talos Energy LLC, Premier Oil PLC, and Sierra Oil & Gas, this operation is the first time an offshore exploration well has been launched by any entity other than Petroleos Mexicanos since 1938, when the country completed nationalization of its oil industry.
The venture first began in 2015 when all three of the companies mentioned won the rights to the prospect in the initial round of bidding immediately after the Mexican government voted to open its energy and oil industries to private corporations. The well, designated as Zama-1 and located off the state of Tabasco in the Sureste Basin is estimated to hold anywhere between 100 million and 500 million barrels of crude oil.
Talos Energy holds a 35% stake in the venture, as well as being the primary operator of the well. The pressure to perform well is immense, as, depending on the success of this joint venture, the implications for the energy industry in Mexico could be massive. If the venture is successful, it could also pave the way for further privatization of the Mexican energy industry.