Presently, the Mexico’s oil sector is rejuvenated courtesy of foreign entrants, Talos Energy and Premier Oil. The two foreign companies, with interest in oil and gas, collaborated with the local Sierra Oil & Gas to form a private outfit that would oversee the drilling of the first non-Pemex oil well in over 80 years. The well, Zama-1, is located in the shallow waters of the Gulf of Mexico.
The drilling work for the Zama Well began in May 2017. According to a statement released by Premier Oil, around the same time, the Zama Well would be complete in late August. Also, the statement indicated that Premier Oil had contributed $16 million to cover its 25% stake in the venture. The three companies were awarded the rights to explore oil in Mexico two years ago. The decision by the Mexico’s government to welcome private investors is attributed to the woes the country’s energy sector is currently facing. Pundits estimate that the Zama Well is endowed with over 500 million barrels of the precious liquid.
Analysts have thrown their weight behind the Zama project. According to Elaine Reynolds of London’s Edison Investment Research Ltd., the Zama Well is likely to succeed owing to the structure of the rocks around the Sureste Basin. He also believes that the well will attract the attention of the industry players as it forms part of the country’s energy reform process. Charlie Sharp of Canaccord Genuity holds the view that the Zama project elicits interest because of its implications for the Mexican economy.
With 35% stake in the private outfit, Talos Energy controls the activities of the well. The Houston based company was founded in 2012 to, among other missions, explore oil in the Gulf Coast and the Gulf of Mexico. Tim Duncan is the co-founder and the Chief Executive Officer of the company.
Talos Energy is famous for its serene work environment. In 2013, WorkplaceDynamics named Talos Energy “the best workplace among local small businesses.’’ Duncan, the CEO of Talos, believes that his employees are thrilled by the company’s plan to allow them to own part of the enterprise.