History has been made for the first time in Mexico. The Mexican waters have taken a new direction by sinking a new offshore well that deals in oil. With that being the current economic drive in the country, foreign competitors have delved into the Mexican energy market. The partnership of Premier Oil Plc and Talos Energy LLC dates back to May 21st when a press statement was issued by the management.
Premier issued a statement in regards to the partnership and the project. As the first offshore project focused on exploring oil mining, the business launched a monopolized project since the establishment of Petroleos Mexicanos. History points to 1938 when Petroleos Mexicanos was launched. According to the project, the economic viability is on the higher side given that Zama-1 well in Tabasco has a capacity of approximately 100 million barrels. The drilling process is set to take approximately 90 days with a total of $ 16 million as the damage. Having won the prospect rights of the project in 2015, the three companies pitched the project after a vigorous vetting by Mexican investment panels. The first round of vetting and bidding earned the companies a huge market niche.
According to Edison Investment Research, this is the first non-Pemex project that involves the drilling of oil in Mexican waters. This is also a leading project that will be constructive in building the economy of the state. As a project that will reconstruct the drilling industry, it is set to yield maximum positive results. In a note that addressed clients, Edison added that the structural alignment of the project is highly projected to be a success. Talos is relevant to the business as it owns 35% of the entire shares. Sierra owns 40% while Premier holds 25%.
Talos Energy was founded in 2012. It is an oil and gas firm that engages in the extensive exploration, development as well as production of oil as well as natural gas. Operating at the heart of Mexico, the company is headed in Houston, Texas. Talos Energy prides itself in being a leading off shore explorer that utilizes advanced technology.