It’s never been done before – but now a Houston-based energy company is partnering with two companies in England and Mexico to pursue an oil drilling venture that has not been pursued in 80 years.
In 1938, Mexico nationalized its oil industry – and that means until 2017, no private company or venture had been able to drill in the country. That all is changing with a new partnership among Talos Energy of Houston, Sierra Oil & Gas of Mexico and Premiere Oil of London. The three oil companies began drilling in Mexico in late May in the hopes of eventually extracting up to 500 million barrels of crude oil from the Sureste Basin near the Mexican state of Tabasco.
Experts in the industry are estimating that this new well could contain as little as 100 million barrels of crude oil – but are expecting to find five times that. Known as the Zama-1 oil well, it is located in a basin ideal for drilling. Analysts are predicting that the joint venture among Talos, Sierra and Premiere will produce a high amount of oil.
The venture is expected to last about three months, with an estimated end date in August. Primarly funded by Premiere Oil, which will pay an estimated $16 million for the project, the project is owned jointly by the three companies at various degrees. For example, Premiere has a 25 percent stake, Talos has a 35 percent stake and predictably, Mexican-owned Sierra has a 40 percent stake.
If you haven’t heard of Talos Energy recently, you are about to here more in the news with this historic, global partnership. Over the year, Talos Energy has been rising in the ranks of oil companies, selling two successful companies that drilled in the Gulf of Mexico before founding the Houston-based company. The global outfit, with more than 200 employees in headquarters and in the operations field, is on a trajectory to show its contributions to the oil industry. The joint venture with Sierra and Premiere will continue to be a proving ground for the company.
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