Houston’s Talos Energy, Mexico’s Sierra Oil and Gas, and London’s Premier Oil are working together on the Zama-1 well that is going to be built off the coast of Tabasco. This is the first time since 1938 that a foreign competitor has been allowed to build and compete in the Mexican market. After a vote, it was decided that the Mexican oil industry needed variety in order to put a stop to its steady decline in recent years. The Zama-1 project is expected to have a huge effect on the market and it is considered to be one of the most interesting explorations in some time.
Previously, all explorations in Mexican waters were conducted by the state run monopoly Petroleos Mexicanos. This is first time in 80 years that a privately owned company is replacing them in an explorative well. The well is located in the Sureste Basin and is expected to hold approximately 100 million to 500 million barrels of crude oil. It will cost Premier about 16 million dollars and it will take around three months for Talos Energy to finish the project. Mexico’s Sierra Oil and Gas company holds the largest stake in this endeavor, but Talos Energy is the operator of the Zama-1 well. Analysts predict huge success for this well and many people predict that is will be mutually beneficial to everyone involved, especially the Mexican oil market.
Talos Energy is known for their great employees, likely because the small Houston based company is considered to be one of the best places to work. They actually received an award for the best place of employment in the Houston area due to the excellent benefits their employees receive. They are fairly compensated in salary and are also given a small piece of equity in the company.
Talos Energy acquired Energy Resource Technology GOM, which is a subsidiary of Helix Energy Solutions Group, in 2013. This was following Energy Resource Technology GOM’s very successful Wang exploration where over 100 feet of high quality net oil was found in the Phoenix Basin. This is hugely beneficial to Talos Energy and is a contributing factor to their rising success as a small company.
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