History has been made after almost eighty years in Mexico when a private company sunk fresh offshore oil in Mexican waters. It is the newest step for the government of Mexico to allow foreign energy companies operate in Mexico. Just after the permit by the government, a partnership of Houston’s Talos Energy LL, Premier oil Plc located in London and Mexico’s Sierra Oil and Gas company commenced the drilling of the well in May 21st. This drilling is the first offshore oil exploration to be launched by the private sector since the Mexico Government took over the oil industry in 1938. The well is known as the Zama-1 and its situated in Sureste Basin off the state of Tabasco.
Zama-1 well contains about one hundred million to five hundred million barrels of crude oil. The drilling process will cost nearly sixteen million dollars and is anticipated to take almost ninety days. When Mexican government decided to open its falling oil industry to private investment, the trio companies won the right to view in 2015.
According to Elaine Reynolds who is an analyst at Edison Investment Research, the drilling process would be intensely controlled by the industry itself, since the process is a part of the country’s energy reform. The morphology area shows that the project has high chances of success.
Talo Energy is a private gas and Oil Company located in Houston. Its primary goal is to concentrate in the exploitation of gas and oil with a focus on the Gulf of Coast of Louisiana and Gulf of Mexico. For seventy years the company has progressed in drilling methods, management, and geophysical technology. It has enabled it to enlarge in exploration, exploitation, and development activities. Talo also endeavors to possess unexploited and under-valued assets that will allow it to exploit it. It strives to allocate its capital in exploration and drilling programs efficiently.It gets supported by investments money that’s linked to Apollo Global Management, LLC, Talos management and Riverstone Holdings LLC. Through their technical team, the company has salvaged its data making it improve its drilling process.