No private company has been allowed to drill an oil well in Mexico for 80 years – until now.
Earlier this year work began on a drill site in shallow waters off the shore of Mexican, a joint effort between three private companies, Talos Energy LLC based in Houston, Premier Oil, a British firm, and Sierra Oil & Gas, an independent Latin American company.
The new well has been labeled the ZAMA-1 and is in the Sureste Basin off the Mexican state of Tabasco. Engineers originally estimate the well could yield 100 million to 500 million barrels of crude – but they were stunned when the well came in at an estimated 1 billion barrels, according to a July 12 article in Reuters.
The contract to create the ZAMA-1 was handled through a bidding process after reforms Mexican invited private companies back in. The partners put together a winning bid in the first round.
Industry watchers are keeping a close eye on what may represents a new era of oil exploration for Mexico since it nationalized its petroleum industry in 1938. When oil was struck earlier this summer, analysts called it “historic.”
Houston-based Talos Energy is a private upstream oil and gas business that focuses its efforts on the Gulf Region. The company is associated with Apollo Global Management, LLC. Talos Energy prides itself on its expertise with propriety processing techniques and maintains a world class seismic database.
Company officials like to tout the “passion” Talos has for contributing new ideas and innovation. This drives its corporate culture forward in a highly competitive global environment. The HC Medi group ranked Talos Energy as a “Top Workplace” for the last four years in a row, including a “Top 100 Work Place” in 2015.
Talos Energy holds a 35% stake in the new ZAMA-1 well. It’s partners Premier Oil holds 25% and Sierra owns the remaining 40%.
Industry watcher Pablo Medina called the ZAMA-1 well “the most important achievement so far” of the Mexican energy reform policy. He said ZAMA-1 is among the 20 largest deposits of its kind found in shallow water in two decades.