The Mexican government decided to break from its routine of drilling its own oil. This has been the case since the Mexican government decided to nationalize the country’s oil in the year 1938. Since then, only a company known as Petroleos has been allowed to drill the precious commodity in the nation. However, the government announced that it had agreed with three overseas companies to begin drilling the oil. According to the report by the Mexican government, the three companies include Sierra Oil and Gas, Talos Energy as well as Premier Oil. Sierra is a Mexican company while Talos Energy is based in Houston, Texas. Premier Oil is a London based company with worldwide subsidiaries. The drilling of this project began on 21st May.
The project being undertaken by these three companies is known as Zama-1 well. According to government sources, the project will result in the production of between 100 million and 500 million barrels of oil. The project is being undertaken in the Sureste Basin that is located in Tabasco State. It was also revealed that the project is expected to cost the three companies a sum of $16 million and will go on for 90 days. The Mexican government revealed that these companies won the rights to this project by participating in an open tender that was conducted in 2015. The Mexican government said that it saw the need for this project to determine whether it could rescue the ailing oil industry. The project is expected to set standards for any upcoming projects of such nature. Talos Energy has an ownership of 35 percent of this project. As for Sierra Energy, they have an ownership of 40 percent.
The remaining 25 percent goes to Premier Oil. Talos Energy has been in existence since 2012 after it was incorporated through the help of two companies known as Gryphon Exploration and Phoenix Exploration. The company was established with the aim of acquiring assets in the oil industry across the Gulf of Mexico. The company operates under the leadership of experienced people from the oil industry. At the moment, Talos Energy is specializing in oil exploration and drilling.