The exploration and exploitation of oil and gas in Mexico was nationalized back in 1938. Ever since, no privately held oil and gas company has ever been allowed to prospect for oil, let alone drill it. However, for the first time in about 80 years, Talos Energy and Premier Oil Plc, both of which are privately held foreign companies, managed to successfully infiltrate the nationalized Mexican oil industry. Their bragging rights for beating such big odds are, however, not theirs to share alone. Mexican Sierra Oil and Gas had part to play in it. In fact, the Mexican oil company played the biggest role and holds the biggest share of the three-way partnership. Premier Oil Plc is London-based and is entitled to 25 percent of the partnership’s revenues to be generated while American Houston-based Talos Energy is entitled to 35 percent of the stake. The rest is for Mexico’s Sierra Oil & Gas.
The joint venture caused lots of fuss in the commercial news world when the companies won rights to prospect and drill for oil on the Mexican sea in a competitive bid. Mexico had just voted to allow private companies to invest in the under-performing Mexican oil industry. The oil well to be drilled, the Zama-1 well, sits in the Sureste Basin of the state of Tabasco. It is estimated to hold an average of 400 million barrels of crude oil. Successful drilling is estimated Talos Energy and company about 90 days to complete on commencement. Specialist oil prospectors also claim that the drilling is likely to be highly successful because the structure of the basin on which the Zama-1 well sits increases the geological chances of success. If all estimates are correct, the drilling expedition will cost a total of 16 million dollars.
Talos Energy LLC
Talos Energy LLC is a privately held company that specializes in exploring and exploiting oil and gas properties, especially in the Gulf Coast. It is an affiliate of the Apollo Global Management which holds some equity over it. The company is particularly acknowledged in the corporate world for having the most dedicated and efficient personnel in many sectors. Its management attributes the productivity of its employees to a policy the company has to share pieces of equity for valuable discoveries and the productions they make.