Talos Joins new Oil JV

July 19th, 2017 by admin
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One of the most highly regulated industries in Mexico is the oil industry. While it is well known that the land underneath Mexican waters likely contains a lot of oil, the country has not been willing to allow private companies to drill in these waters. While the country used to be very restrictive to companies that are looking to drill in Mexico, they have recently announced that they will be allowing a private company to drill for the first time in nearly 80 years.

A joint venture between three companies announced that they had received the approval necessary to start an offshore exploration in the coming years. The joint venture is between Premier PLC, which is based out of London, Talos Energy out of Houston, and Sierra Oil and Gas, which is based out of Mexico. The three companies will share much of the work and investment that will go into exploring, drilling, and establishing a base of operations.

The three companies believe that there is a lot of potential to find oil in this region. The Zama-1 well is near the Tabasco area of Mexico and is estimated to hold up to 500 million barrels of crude oil. They expect the full drilling process to take about 90 days. Once the oil is removed and goes through the refining process it could have a big impact on oil markets across the world. Oil prices have been pushed down in recent months due to over-supply and lower demand.

Of the three partners, Talos Energy will likely handle much of the exploratory work. The company was founded in 2012 and is now one of the leading energy companies in Texas. They have continued to focus on searching and drilling in the Gulf of Mexico, which continues to be one of the hottest spots for those looking to find new pockets of oil. The company has a lot of equity behind it, which has allowed them to expand rapidly and take advantage of changes in regulation that have opened the door for new oil companies to compete in the challenging industry.

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