The combined efforts of Huston’s Talos Energy LLC, London- based Premier Oil Plc. and Mexico’s Sierra Oil & Gas have brought forth a new milestone in the energy markets. Together, they have sunk an offshore oil well in Mexican water, this being the first time in nearly 80 years such an operation has been done by a private company. The previous one had been carried out in 1938 by Petroleos Mexicanos, a state run monopoly.
Statements released by Premier confirm that the Zama-1 well, found in the Sureste Basin near the state of Tabasco, will yield crude oil in the region of 100 million to 500 million barrels. The project, which kicked off on 21st May 2017, was expected to go on for the following 90 days consuming about $16 million. The trio had won the rights to the mining prospect in 2015 after Mexico allowed private investors to venture into its ailing oil industry. The trio’s project is expected to yield success given the structure of the basin.
Talos energy is the operator of the well on owns 35% stake with Sierra and Premier owning 40% and 25% respectively. The operator, which is a private oil and gas mining company, which has a close interest in the acquisition of gas and oil in areas around the Gulf of Mexico and Gulf Coast, is headquartered in Houston. Talos part of the company of funds related to Apollo Global Management.
Talos Energy was born as a result of the merger of Tim Duncan and other partners who contributed $600 million that was used to fund the company. The money had been sourced from assets in the Gulf of Mexico, which in 2016 produced 16,000 barrels of oil per day. Talos was named by WorkplaceDyanmics as the best workplace from which local small businesses could thrive. Duncan, as the leader of the company, was keen on rewarding the risk and talent from the team involved: geoscientists, receptionists and the many other employees who were part of the headquarters in Houston. He further awarded bonuses to those who worked hard or played hard during the Friday Happy Hours.
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