Talos Energy’s private well sunk into Mexican waters is the first private well in over 80 years to be dropped by a private entity. This well is being dug by Talos Oil of Houston, Premier Oil of London and Sierra Oil & Gas of Mexico. The drilling commenced on May 21, 2017. This development marked the amendments made by Mexico in a move aimed at welcoming back foreign competition into its energy market. Mexico had in 1938 nationalized the oil industry which created a monopoly for oil company Petroleos Mexicanos operated by the state. These three firms won the bid that gave those rights to prospect oil in 2015.
This well sank in Sureste Basin which borders the state of Tabasco was estimated to be holding 100-500 million barrels of crude oil during prospection. The drilling took 90 days to complete and cost $16 million to Premier Oil. This move to allow private investors in the energy industry is expected to revive the sector, which at present is not doing too well. Experts have voiced their opinions saying that the project has a high chance of success owing to the structure of the basin around which the crude oil well has been dug. Talos is operating the well with a 35% stake, and Premier holds 25% stake in the venture. The most significant stake is held by Mexico’s Sierra Oil and Gas.
Talos Energy LLC is a privately owned oil and gas company based in Houston. The company is mainly focused on exploring and acquiring oil and gas property concentrated around the Gulf Coast and the Gulf of Mexico. Talos is funded by Riverstone Holdings LLC, Talos management and Apollo Global Management, LLC. Talos acquired Energy Resource Technology GOM, Inc. for $620 million. Energy Resource Technology is a subsidiary of the Helix Energy Solutions Group that dealt with oil and gas. The Helix Energy Solutions Group has its headquarters in Houston, TX. It was an offshore energy company that had made leeway into international markets. Talos Energy acquired an asset which offers it development solutions other vital services to the energy market.