An historic energy partnership has broken ground in Mexico in an effort to push global competitors into the energy market. For the first time in 80 years, three premiere energy companies have partnered to open a new oil well offshore in Mexico. The partnership has news outlets buzzing about the potential for private partnership oil drilling in Mexican states.
The partnership comes from three energy companies: Talos Energy, based in Houston; Premier Oil, based in London; and Sierra Oil & Gas in Mexico. In late May, the partnered companies began drilling on the site—the first private venture to drill in since Mexico nationalized the oil and energy industry in the 1930s.
The offshore well, known as the Zama-1, is located in the Sureste Basin near the Mexican state of Tabasco. It holds up to an estimated 500 million barrels of crude oil. Drilling will take about three months, at a cost of about $16 million. Experts are saying that geological surveys point to a high rate of potential success in extracting the oil–and the companies will work together to help ensure as much of the oil supply in the drilling area can be extracted safely and securely.
The joint venture among Talos Energy, Premier Oil and Sierra Oil & Gas also points to interesting dynamics and what the three companies have at stake. Talos, for example, is the operator of the offshore well and owns 35 percent of the venture. Premiere owns 25 percent and Sierra owns 40 percent.
Talos Energy was begun by investor Tim Duncan in 2012 after building and selling two oil and gas companies with drilling operations in the Gulf of Mexico. Today the company produces more than 16,000 barrels of oil every day and has a company that has expanded to more than 60 employees who are based in Houston, Texas. Add that to the more than 120 employees based in the Gulf of Mexico, and the company is a sign of new growth and an expanded demand for energy resources across the world.
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