In 1938, Mexico closed its energy sector to foreigners and licensed a single state-owned company Petroleos Mexicanos the rights to do offshore oil exploration and drilling within its borders. In a recent move by the Government to institute reforms in the energy sector, a private company has been given leeway to drill a new offshore oil well within Mexican waters, a step that has been lauded by many as a green light to allow foreign businesses back to the Mexican energy markets after almost 8 decades of protectionist policies.
The lucky firm is a joint venture comprising of 3 oil and energy companies namely Premier Oil Plc based in London, Talos Energy LLC from Houston and Mexico’s Sierra Oil & Gas. In a statement released by Premier Oil Plc, the company revealed that drilling has already begun and is expected to go on for up to 3 months. The statement also added that the exercise is expected to cost Premier Oil Plc alone a total of $16 million with the total estimates of the product in the well expected to be in a range of between 100 million barrels to 500 million barrels of crude oil. According to Premier’s statement, Talos energy will be in charge of operations and will own a stake of 35%. Sierra Oil & Gas will be the largest shareholder in the venture with a stake of 40% and 25% for Premier Oil Plc.
About Talos Energy
Talos Energy is a private oil and gas exploration and drilling company. The company is led by a management team with several years’ hands-on experience in both offshore oil and gas exploration and production. Talos Energy pride themselves with possessing the expertise and machinery required for exploring, exploiting and optimizing deepwater assets by using the most innovative techniques and modern cutting-edge seismic technologies.
With a strong and positive track record spanning well over 10 years, Talos Energy has continued to deliver high returns to their investors while continuing to seek new innovative and safe ways to operate in a deliberate effort to widen the company’s competitive advantage.