Energy Reform Brings Talos Energy to Mexico

The Mexican government has announced a change in its standing policy to keep private companies from oil wells in Mexican waters. This reticent announcement was made with back in 2015, stating that the government was seeking new ways to drive up competition in its energy markets. In response to this announcement, Talos Energy, a Texas-based oil and gas company, formed a partnership with Premier Oil from the UK and Mexico’s own Sierra Oil & Gas. Talos and company first lobbied the Mexican government back in 2015 when the announcement was first made. After much mediation, a $16 million deal for first-drilling rights. It’s the first drilling efforts in Mexican water by private, foreign companies and not the state-run Petroleos Mexicanos since 1938. Drilling efforts began at the Sureste Basin offshore from Tabasco.

The Sama-1 well is expected to contain an approximate 500 million barrels of crude, and these companies have but 90 days to extract it before their drilling window closes. Aside from direct business interests, the energy industry is very interested in what Talos has kicked off in Mexico. According to analysts from Edison Investment Research in London, as Mexico continues to reform its energy regulations and invite more companies to compete with Petroleos Mexicanos it will gain more attention. Seeing this as an opportunity for companies to expand to a new region, Talos has more incentive than before to succeed in meeting its drilling projections than before. The possibility of intense competition in a market that previously had none could shape up to be the most interesting energy story of 2017.

About Talos Energy:

Talos Energy is an oil and gas company that specializes in offshore exploration and the development of deep-water assets. With years of experience operating in the Gulf of Mexico, Talos Energy has been instrumental in testing novel approaches to explorations and making use of high-end seismic technologies in the endless quest for energy stores while maintaining a commitment to protecting the environment. With more than 10 years in operation, Talos Energy has consistently remained at the forefront of success. Remaining abreast of the changes in the industry has allowed Talos to innovate in ways that helps the industry grow and expands their influence to new partners across the globe.

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