The energy world is always changing and that means companies need to be ready to move and change with the times. Talos Energy LLC, based out of Houston, TX, has recently gotten a jump start on the competition that is very unlikely to be beaten. Talos Energy recently broke open an 80 year old stay on private oil drilling in Mexican waters with their agreement to work on the Zama-1 well. Talos Energy is one part of a three-part approach to the Zama-1 well and it looks like it will be a game changing decision for the entire oil industry.
Mexico has been notoriously closed off to foreign drill teams entering their waters for private companies. In fact, it hasn’t been since 1938 that a foreign and private company has entered into a drilling contract with the country. Mexico has pretty much allowed Petroleos Mexicanos, the national state-run oil company, to handle all of their drilling. This change is one part of a huge shake up that might have a domino effect on the entire industry. You can rest assured that other industry hawks are watching to see how Talos Energy fares.
Of course, Talos Energy won’t be working alone though they will be running the well. Talos Energy will be partnering up with Premier Oil Plc out of London as well as Sierra Oil & Gas out of Mexico. Drilling as a team will begin on May 21st, 2017 and it is expected to run for nearly 90 full days. Reports show that the Zama-1 well may contain upwards of half of a million barrels of crude oil ready for the picking. Conservative estimates have the Zama-1 well featuring just 100,000 barrels of crude oil. Still, this is a step in the right direction for an industry that has been fundamentally monopolized against outsiders.
The Zama-1 well is situated within the Sureste Basin which is itself right off of the coast of Tabasco. Talos, Sierra, and Premier won the chance to undertake this well after a round of bidding back in 2015 sw their companies land atop the list.