According to a Bloomberg News article published on May 30, 2017, Mexico’s energy sector particularly the oil industry had opened up to investments from foreign firms, a new development in over 80 years. The Mexican government hit the headlines on March 18, 1938, when it nationalized the oil sector allowing the government-owned Petróleos Mexicanos (Pemex) to dominate the industry.
Although the 1938 decision stirred anger from some quarters including the U.S, the UK, and Netherlands leading to an international boycott of Mexican products, the country was determined to implement its decision. However, the Mexican oil sector started experiencing a downturn in 2007 prompting the government to debate on the possibility of allowing foreign firms to revamp the industry. 2015 marked a new dawn in Mexico when international companies including Premier Oil Plc., and Talos Energy LLC won rights to prospect for oil in Mexico; this was the first round of bidding since Mexico changed her constitution to accommodate foreign oil and gas companies.
Houston’s Talos Energy and UK’s Premier created a joint venture with Mexico’s Sierra Oil & Gas. Talos owns a 35 percent a stake, Premier, 25 percent, and Sierra 40 percent in the venture. At a news event addressed by Premier, the UK firm was optimistic that their first well, Zama Well, would be drilled beginning on May 21 and the drilling would reach completion after three months. Premier emphasized that the Zama Well showed signs of crude oil more than 500 million barrels. Premier concluded the address by stating that the Zama Well would cost the company over $16 million. Click here to know more about Talos Energy.
International players in the oil and gas industry were elated to learn that a well partly owned by global firms would be sunk in Mexico. They interpreted the significance of the well in different ways, but they all agreed that the Zama Well would change the prospects in the Mexican oil sector.
Talos Energy is tasked with overseeing the operations of the well perhaps because its activities are centered on the Gulf Coast and the Gulf of Mexico. Timothy Duncan is the CEO of the company, and he is also the co-founder.