The Mexico’s oil sector is witnessing an increased activity courtesy of foreign firms such as Talos Energy and Premier Oil that were just recently allowed to operate in the country’s oil and gas industry. In 2015, Talos and Premier won rights to prospect for oil in the shallow waters of the Gulf of Mexico. The two firms together with Mexico’s Sierra Oil & Gas struck oil in the Sureste basin off the state of Tabasco.
Recently, Premier Oil announced that the three firm, in a joint venture, would drill a well, the Zama-1 Well, to harness the natural resource. Specifically, drilling of the well was expected to commence on May 21, 2017.Premier Oil (an independent UK oil and gas company) stated that it would take three months for the Zama-1 Well to be operational. According to the Premier’s statement, the Zama Well holds over half a billion barrels of recoverable crude oil. Although it would cost Premier $16 million to finance its 35 percent share of the project, the company is optimistic that the project will be successful owing to the structure of the basin which geologists say is common in areas with viable deposits.
The Premier’s announcement stirred analysts and investors up. Apparently, players in the oil and gas industry have adopted a “wait and see” approach; they are waiting to see how the Zama project will turn out. Elaine Reynolds, an analyst Edison Investment Research, suggests that the Zama Well draws attention because it is the first non-Pemex well to be dug in over 80 years and also because it has vast implications for the Mexico’s oil industry.
Although the Houston based Talos Energy owns a 25 percent stake in the venture, it is the operator of the well. The project is crucial for the 5-year-old private company as it seeks to build a name in the global oil and gas industry. Tim Duncan is the CEO of company.
Just one year after it was established, WorkplaceDynamics recognized Talos Energy as the “Best Workplace among Local Small Businesses.” Duncan is committed to empowering the company’s workers by offering them equity in Talos Energy.
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