Public companies have for over 80 years served the Mexican energy industry. The country’s regulations only allowed for the development of energy resources by government institutions. However, in the recent years, the regulations have allowed for private companies to invest in the energy sector. Oil exploration has began for the first time in over eight decades. Premier Oil Plc, a London-based company, Houston Talos Energy, and Sierra Oil & Gas which is a Mexican company has sunk an offshore oil well in the Mexican waters. The three companies began drilling on the 21st of May 2017. According to findings, the well named Zarma-1 holds 100-500 million barrels of crude. The companies have invested an estimate of $ 16 million, and the drilling process is expected to take three months.
In 2015, the Mexican government decided to open the oil industry to private investors. The contract got awarded to the three companies in the first round after bidding. A comment issued by Elaine Reynolds, an Edison Investment Research analyst stated that the well, as it is the first after the energy reforms, it is expected to receive a lot of reviews from private investors. Additionally, he stated that the geological structure of the oceans bedrock suggests and give good signs of striking oil. A note issued by Charlie Sharp, Canaccord Genuity analyst, says that the well holds good tidings for the Mexican energy industry. The three companies share the ownership in the ratio of 35:40:25 for Talos, Sierra, and Premier respectively.
Talos Energy is a Houston-based oil and gas company. The institution focuses on exploration and acquisition of businesses in the energy sector. Mainly, it has set it development goals on the Gulf of Mexico and Gulf Coast. The finance prowess of Talos gets backed by Apollo Global Management LLC and Riverstone Holdings LLC.
Its success in the energy industry gets achieved due to a management team that prides itself with decades of experience in offshore oil and gas exploration. The company develops deep water assets, explores, and optimizes the assets ensuring decent returns. With an established background in the business, the institution foundation ensures it thrives and provides a competitive edge in the market.
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