The Zama-1 well is the first to be drilled by another company other than the Petroleos Mexicanos in the Mexico’s energy industry. Drilling of the well is a joint venture of Talos Energy LLC of Houston, Premier Oil Plc based in London and Mexico’s Sierra Oil & Gas. These companies won the tender in 2015 and became the first competitors to Pemex in that sector. The aim of the country’s move to allow foreign companies into its energy sector was prompt by the need to rescue the failing industry. For the past eighty years, Mexico has had just Pemex in the industry and with the introduction of foreign companies. The energy industry is expected to have an increase in revenue.
Premium Oil Plc, who owns twenty-five percent of the project, expects to part with sixteen million dollars as cost in drilling. According to a report by the company, Zama-1 holds between one hundred and five hundred million barrels of crude. The project will take three months to be completed, and so far it shows a high geological chance of succeeding. The well, being the first to be drilled by another company is expected to be watched closely by the industry, according to an analyst at Edison Investment Research Ltd, Elaine Reynolds. Charlie Sharp who is Canaccord Genuity Ltd.’s analyst noted that this year, it would be a fascinating exploration well to be drilled in the energy sector.
About Talos Energy
Talos Energy LLC is an oil and gas company that focuses their work on exploration and acquisition of oil and gas properties. The company’s business is primarily in Gulf Coast and the Gulf of Mexico. Talos Energy has funds affiliated with Riverstone Holdings LLC and Apollo Global Management both who committed six hundred million dollars in 2012. Duncan and his partners founded Talos Energy after selling Phoenix Exploration to Apache Corp.
In 2013, Talos Energy acquired Energy Resource Technology GOM, a subsidiary of Helix Energy Solution Group. The same year, WorkplaceDynamics named the firm, the best workplace among local small businesses. Employees of Talos Energy enjoy working at the company. They say although it is a small organization, it offers large opportunities and growth.