Energy has always been big business in Mexico. More specifically, it’s been a monopoly for decades, restricting investment in this economic sector from private and foreign money. So when Talos Energy entered the market it rightly caused a stir in the global energy industry.
In 2015 the Mexican government announced that it was looking at ways to open the country up and invite more private investment. This was when Talos Energy, in partnership with Sierra Oil and Premiere Oil, decided to lobby Mexico’s leadership for first-drilling rights in its waters, challenging a standing policy concerning their energy resources. More than a year in negotiations, and a $16 million agreement later, Mexico eased its policy, in place since 1938, to allow Talos Energy to drill.
The lift of this investment ban has speculators in the energy industry talking. Some are already arguing that it could wind up being the biggest energy news story of the year, not just for what’s happening because of this deal but because of what it can make possible. If Talos Energy is successful in its drilling operation and can form a positive working relationship with the Mexican government, they may be more receptive to letting more players into the country. similarly, other countries that have kept foreign companies away from oil reserves may see this as an opportunity to question existing policies.
Talos Energy an its partners have been drilling in the Zama-1 well, just off the Sureste Basin, since early May of this year. Projections from the company put production at somewhere between 100 and 500 million barrels of crude oil. But they’ll only have 90 days to complete their drilling efforts.
About Talos Energy:
Talos Energy is an oil and gas company in Houston, Texas. Since 2012 Talos Energy has managed shelf and deep-water drilling operations in the Gulf of Mexico.
Talos Energy continues to be a leader in offshore exploration, developing efforts to discover wells in unexplored waters. This intrepid business model has attracted new technologies and innovative methods in energy production. Becoming a leader in the energy industry has allowed Talos Energy to become a leader in oil and a welcome partner to many international economies.
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