Mexico had for a long time kept its oil and gas explorations at bay to the extent that international private oil exploration companies did not venture into their markets, which were deemed non-competitive. The latest development of allowing private firms to sink an oil well in their shores is a good sign in the energy sector of the country, a move which comes after 80 years of unsettled dormancy.
Three internationally reckoned oil drillers entered into partnership to set the pace and grow the market in the country. They were the London Premier Oil Plc, Talos Energy LLC and Mexico’s Sierra Oil and Gas. Oil had been at the monopoly of the Petroleos Mexicanoes from the year 1938, a consequence of the state nationalizing the oil industry, thus killing international competition.
The Offshore Energy Capacity
The Zama-1 well in the Sureste belt has been approximated to hold more than 500 million barrels of pure crude oil and gas deposits, according to the prospecting reports of Premier Oil, LLC. The deposits and reserves will take up to 3 months to fully exploit, at a total cost of $16 million. The three companies were given the green light to continue prospection in 2015, thus bringing full-circle the country’s energy aspirations.
Talos Energy Share
The three companies will not share the exploits in equal proportions, owing to the fact that Talos Energy has been given the rights to be the lead driller, and has in the agreement been apportioned 35 %. The others will share the remaining with Sierra taking 40 % whereas Premier Oil takes 25 % of the total shares.
Talos Energy is a privately owned profit-making, upstream oil and gas company with its headquarters in Houston, Texas. Its interests in the energy sector range from prospection in new lands, explorations and acquisitions of oil fields as well as exportation from refinement. It mainly operates in the Gulf of Mexico and the Gulf Coast. Its affiliates are the Apollo Global Management and Riverstone Holdings, LLC.
Talos contracted and took possession of the gas producing subsidiary: Helix Energy Solutions with a total cost of $620 million, considering the projections that it has the potential to produce and raise a total of $470 million in profits, annually.
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