Talos Energy is Re-energizing the Oil Industry
History was made this year when the Mexican government gave permission to privately held companies to start drilling for oil, in Mexican waters. To understand the significance of this, one needs to understand that Mexico has not allowed private companies to do any oil related work on its soil for more than 80 years. The area where the private companies have been allowed to drill is off the coast of the state of Tabasco, in an area called Sureste Basin. The reason why this is a big deal is that of the sheer size of the find is nothing like anything recent. The most conservative estimate puts it at around 100 million barrels of crude and at the top end of it, it could be as much as 500 million barrels or more.
The well itself has been named Zuma-1 and there are three major players involved in the drilling. They are; Talos Energy based in Houston, Premier Oil of England and Sierra Oil and Gas of Mexico. The three companies put in their bids for drilling rights and won it in the first round itself. The drilling itself is expected to take three months to complete, at a cost of $16 million. The reason for all this change in stance by the Mexican government is because the state-run Oil company, Pemex, has been facing financial issues. The Zuma-1 well is the first non-governmental well since oil exploration was closed to private entities more than 80 years ago and what Talos Energy knows.
Talos Energy, one of the players in this venture, is based in Houston, Texas. The company has the financial backing of Apollo Global Management and is an international company providing various types of services for the oil and natural gas industry. However, the companies main focus at present is the Gulf of Mexico. Even though Talos energy is a relatively new company, it has already garnered several awards including “top places to work at” four years in a row. With the huge success in the Gulf of Mexico, Talos has set itself up for success for a long time and Talos Energy on Facebook.