Just last year Talos Energy dropped a well in Mexican territorial waters and struck oil — potentially two billion barrels worth. Now the young Houston-based wildcatter is going for more by nurturing a deeper partnership with Mexico’s state-owned Pemex. Plans call for two more wells to be drilled adjacent to the block where Talso Energy made its initial find.
There is much that is historic about the arrangement. Mexico nationalized its oil industry in 1938. For more than 80 years no foreign entity has operated in the Mexican territorial waters of the Gulf of Mexico. But that changed in 2017 when Talos Energy sunk the so-named ZAMA-1 well.
Joining Talos in the project is Premier Oil of the United Kingdom and Sierra Oil & Gas, a Latin American firm. Talos Energy is taking the lead in drilling and future development of site infrastructure. It will enjoy a 30% share in ZAMA-1.
If all goes well, and with additional drilling planned, Talos Energy CEO Timothy Duncan says the site may be pumping as much as 100,000 to 150,000 barrels per day by 2023. Additional platforms will need to be built as well as infrastructure to transport oil to market.
The fact that Mexico has formed agreements with Talos Energy and others shows that country’s strong desire to turn around its slumping energy industry. The past 14 years have witnessed difficult times for Pemex. It is hoped that vibrant young companies such as Talos will help reinvigorate Mexican energy development, bolstering jobs and tax revenue for the nation.
Talos CEO Tim Duncan recently met with a high-level Mexican delegation which included President-Elect Andres Obrador. The incoming head of state said the success of projects like ZAMA-1 carry a certain urgency. He encouraged Talos officials to move forward aggressively. Duncan said he is 100% committed to doing just that.
Talos Energy is a relatively new player on the world energy stage. The company was formed in 2012 and recently bolstered its position by merging with Big Stone Energy and a buyout of Whistler Energy II. It now trades on the New York Stock Exchange as TALO. Click here