Mexico for decades had banned foreign companies from exploring oil and gas in the Mexican water. The ban has however been lifted due to the dwindling fortunes in the Oil and Gas industry. Mexico has not been fully exploiting its natural resources to the fullest for the last 80 years, and as a result, the Oil and Gas sector has been ailing for years. The Mexican Parliament voted unanimously on a bill that will allow privately owned foreign companies to drill oil in Mexico. Oil and gas exploration in Mexico was nationalized by the government in the year 1938. The only company that was allowed to exploit oil and gas resources was the state-owned company Petroleos Mexicanos. Ever since no privately owned foreign company has ever been allowed to drill oil in the Mexican Waters.
In a historical Move three, privately owned companies won the prospective rights to explore and drill oil in Mexican waters. The three companies are Mexico’s Sierra Oil & Gas who are the largest shareholders owning 45 % of shares; the law requires that the largest stakeholder in such a venture should be a Mexican company. Sierras is followed by Talos Energy LLC with a 35% stake in the joint venture and is the Well operators. Premier Oil Plc is the other privately owned company in the exploration deal and holds a 25% stake.
ZAMA-1 well which is situated in the Surest Basin is the place where the exploration is going to take place and is estimated to hold between 100 million and 500 million barrels of crude oil. The drilling and exploration exercise is expected to take three months and is going to cost about 16 million dollars.
Being the first exploration to happen in 80 years it will be keenly watched by industry players in Mexico and globally. Researchers have projected a high chance of success since the basin is well structured.
About Talos Energy LLC
Talos Energy is a privately owned Oil and Gas firm that focuses on the exploration, exploitation, and drilling of oil and gas in areas, especially around the Gulf Coast. The company is headquartered in Houston Texas. Talos is renowned globally for having the best and most efficient state of the art equipment for drilling and exploring oil and gas.
Read More : www.talosenergyllc.com/about-us/