For nearly 80 years it was impossible for energy companies to bypass the power of a sole monopoly operating in Mexico’s waters. But this year marks the first time the Mexican government has reversed its policy in order to invite private investment, and its having a lot of people wondering about the future.
Talos Energy, a oil company based in Houston, Texas, formed a partnership with Premiere Oil and Sierra Oil back in 2015 when the government first announced its relaxing on drilling laws in its territories. After more than a year of lobbying, the joint venture secured first rights and began drilling efforts in May of this year. It marks the very first time a foreign enterprise has had access to crude in those waters since 1938.
Drilling efforts continue at the Zama-1 well in the Sureste Basin off the coast of Tobasco. According to their estimates, somewhere between 100 and 500 million barrels of crude oil can be extracted from this location. Those are claimed to be conservative estimates, and they’ll only have 90 days to meet those projections before their permit expires. Its expected to cost these partners an approximate $16 million to fund.
Speculators see this new drilling in Mexico is a boon to the energy industry that will likely go unmatched in terms of interest in 2017. Edison Investment Research states that it expects the completion of this run to set the tone of Mexico’s willingness to accept more foreign investment in energy. It will also draw the attention of other big energy companies looking for new locations to drill as well as other nations that are considering expanding their energy industries.
About Talos Energy:
Talos Energy is an American oil and gas company, based in Houston, Texas. Since its founding in 2012, Talos Energy has been a respected figure in American energy and a key component for developing techniques and technologies for exploration and energy production, both in deep-water and shelf, throughout the Gulf of Mexico.
An ambitious entity, Talos Energy has cultivated important partnerships across the industry and with national leaders looking to expand their energy markets. Part of their success has led to the development and eventual sale of companies like Gryphon Exploration Company and Phoenix Exploration Company.
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