A privately held company has sunk a new oil well in Mexico. This is the most recent Mexico’s step in allowing foreign competitors back into its energy market. An amalgamation of Premier Oil Plc, which is based in London, Talos Energy LLC of Houston and Sierra Oil and Gas of Mexico, started drilling the well on May 21. The project is the first offshore probe to be someone other Petroleos Mexicanos, which is the state-run monopoly since the oil industry was nationalized.
Zama One Well, situated at Sureste Basin is estimated to hold 100 million to 500 million barrels of crude. Its drilling is expected to take up to three months to be done at the cost of $16 million. The three partners obtained the rights to the prospect in 2015. This was in the first round of request after Mexico voted to liberalize its ailing oil sector,opening it to private investment.
A Keenly Watched Well
The Zama well will be the center of attraction in the industry since it’s the first non-Pemex oil well to be exploited in the history of Mexico’s oil exploration. The launch was part of the reformation process of the country’s energy. The report is from Elaine Reynolds, an analyst who works at Edison Investment Research Limited, who further states that due to the structure of the basin it has a high chance of success.
The Mexican market implies that Zama is among hilarious exploration wells to be drilled in the oil industry currently. This is from Charlie Sharp, Canaccord Genuity Limited analyst. Zama well is closely held by Talos Energy, which holds 35 percent stake in the prospect.
Talos Energy at a Glance
Talos Energy LLC is a private oil and gas company. It is based in Houston. The company is led by Tim Duncan, who has proved to be an excellent leader. It is engrossed in the exploitation and exploration of gas and oil properties. It is affiliated with Apollo Global Management, LLC and Riverstone Holdings, LLC. To know more click here.