Opening up of markets is a wonderful thing, especially if it is in the petroleum or the oil and natural gas business. Mexico, a country with large on shore as well as off shore reserves, turned it into a state run enterprise back in 1938. Like most government run projects it eventually ran into trouble. Now the government of Mexico has decided to open a new chapter in oil and gas business by handing over the keys to private corporations. A few months ago, a joint venture between three companies began drilling for oil in the Gulf of Mexico. The three companies are Talos Energy LLC of Houston, Sierra Oil, and Gas of Mexico and Premier Oil Plc, a British company.

The exact area that is getting drilled is off the coast of the state of Tabasco in an area known as the Sureste basin. The well has been named “Zama-1” and the potential of this well is as much as 500 million barrels! The drilling process should take about 3 months at a cost of $16 million. The Mexican government awarded the rights to drill through a bidding process, in which the three companies won. This happened back in 2015 in a bid by the Mexican government to put the oil and gas industry back on the map.

Talos Energy LLC was started in part by Tim Duncan and his partners. Tim used to work for another energy company known as Phoenix Exploration which he and his partners succeeded in making it a very successful company before it was sold to Apache Corporation. After the sale, Tim became instrumental in starting Talos Energy, with the blessings of his previous backers from the days when he worked for Phoenix Exploration. To know more click here.

Armed with a war chest of $600 million, they began exploring for oil in the Gulf of Mexico. This venture was successful as it ended up producing nearly 16,000 barrels a day. This is what ultimately gave the folks at Talos the confidence to join the new venture with the other companies and bid for rights in Mexico.

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