In the past 80 years, no private company has been allowed in Mexico to sink any new offshore oil well. This is a part of the efforts being made by the Mexican government to allow foreign investors into its markets.
This is a joint venture. It includes Premier Oil PLC that is based in London, Talos Energy LLC of Houston and Sierra Oil & Gas of Mexico. The drilling of the well started on May 21. This is the first time that any offshore exploration well has been launched by someone who is not from Petroleos Mexicanos. This is because, in 1938, Mexico had nationalized the oil industry Petroleos Mexicanos being state-run, enjoyed the monopoly.
This privately dug offshore well has been termed Zama-1 well. It is in the Sureste Basin. It is located just off the state of Tabasco. It is estimated that this well contains 100 to 500 million barrels of crude oil. The drilling is expected to get completed in 90 days. The total cost of drilling is estimated to be $16 million. This right to dig was won by this joint venture in 2015.
Since this is the first that a non-Pemex well has been drilled after the Mexican waters opened, it marks the onset of the energy reform process of the company. Hence the industry is keenly watching this development. Geologically, this basin displays a high chance of success. All analysts are considering Zama-1 well being dug by Talos Energy as the most interesting exploration well being drilled this year.
In this venture, Talos Energy is the main operator as it is the owner of 35% stake here. Sierra is holding 40% stake while Premier holds 25% stake.
Talos Energy LLC is an oil and gas company that is privately-held. It is based in Houston. It has a wholly owned subsidiary known as Talos Production LLC. It has just acquired Energy Resource Technology GOM, Inc. This is a subsidiary of Helix Energy Solutions Group, Inc. The acquisition had cost Talos Energy $620 million. Now people are looking forward to oil exploration being done by it.