It has been nearly 80 years ago Mexico nationalized its oil industry, which the state-run Petroleos Mexicanos has exclusively managed since 1938. Due to a struggling oil economy, Mexico opened up their waters to private industries as part of an energy reform program. In 2015 when Mexico opened its oil industry to private investment, three companies won the rights to offshore exploration during the first round of bidding. Those three companies are Premier Oil Plc from London, Talos Energy LLC from Texas, and Sierra Oil & Gas from Mexico.
The three companies began drilling on May 21, 2017, and expect drilling to take 90 days to complete. Premier Oil estimates that the Zama-1 well in the Sureste Basin contains 100 million to 500 million barrels of crude oil. The industry is watching the exploration with keen interest in the results.
Talos Energy operates the well and holds 35% stake in the drilling venture. This once small Houston-based company was named the best workplace among small local businesses by WorkPlaceDynamics in 2013. Although Talos started small, their acquisitions and success are leading to rapid growth. They have focused on acquiring oil and gas companies in the Gulf of Mexico and Gulf Coast. In 2013 Talos Production LLC (a wholly owned subsidiary of Talos Energy LLC) acquired Energy Resource Technology GOM, Inc (ERT). ERT’s assets are in the Gulf of Mexico, and they experienced great success with their Wang Exploration.
Ash Shepherd, Talos’s commercial manager for Mexico at Talos Energy LLC was named a Thirty under Forty Honoree in 2016. Shepherd was closely involved in the process of Talos winning rights to offshore exploration as part of Mexico’s energy reform program. His efforts embody Talos’ strategy to apply their geological, geophysical and operating experience to acquire, exploit and explore the basin in the Gulf Coast and Gulf of Mexico area.
With their recent acquisitions and exploration drilling, Talos should expect growth and success in the Gulf of Mexico.
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