In a new joint venture between Premier oil of London, UK, Talos Energy LLC of Houston, TX, USA, and Sierra Oil & Gas of Mexico, the first offshore oil well to be sunk in Mexican waters by a privately held company has been opened. On May 21, 2017 Drilling began with the well, which is the first exploration of offshore reserves in Mexican waters to be undertaken by anyone other than the state owned Petroleos Mexicanos in more than 80 years. Since the country nationalized the oil industry in 1938, oil drilling and exploration for new reserves have been activities which have been held very close to the vest by the country’s government.
The energy reform, which has made this bold new step possible has been a long and hard-fought process, but one that which the country had no choice but to engage in since the oil industry in its previous form was failing fast. Now, however, that the waters have been opened up, and the first non-Pemex well is underway a new day is set to dawn for Mexico and its energy partners. The drilling process will take up to ninety days, and will cost an estimated $16M US.
The new well is located off the coast of the state of Tabasco, and may hold up to half a billion barrels of crude oil. The rights to drill the well, and extract the oil were won by the triple company consortium in 2015, in the first round of bidding. It was considered at the time, and still today to be a huge boon for all three entities. Talos will be the actual operator of the well, and will hold a 35% stake in the venture as it proceeds, the remaining percentage is split between 40% for Sierra, and 25% for Premier.
Talos Energy LLC is a company which focuses on the exploration and acquisition of oil and natural gas in the Gulf of Mexico and gulf coast region. Talos is an upstream company backed by investment funds primarily supplied from Apollo Global management, LLC, as well as Riverstone Holdings LLC, and Talos Management Group. The company was founded in 2012, and has quickly risen to be one of the premier upstream companies in the sector. The company has recently been in negotiations to acquire the gulf properties owned by Stone Energy as well as expanding their own property holdings, which currently encompass more than 10.2 million acres of Seismic inventory.
The new well will increase the economic footing of Talos even further, and in partnership with Sierra and Premier, the joint venture is set to be one of the most profitable oil and natural gas endeavors ever.