Talos Energy brings life to Mexican gas & oil industry
Mexican gas and oil industry have been on its knees for a long time. This is mainly due to the fact the Mexican government decided to nationalize the sector in 1938. All private investments in the oil and gas industry were put to a halt. A government-owned entity known as Petroleos Mexicanos (Pemex) was the only player left to control the industry. At first, Pemex regulated the oil and gas prices in the country, and they stabilized. However, with the toughening economic times, the company was unable to make significant improvements in the Mexican oils and gas sector. Recently, the government finally decided to intervene, and it opened up private investment in a bid to save the ailing industry.
In 2015, private companies were allowed to place their bids and only three firms succeeded in acquiring the lucrative deal. These companies are Premier Oil from London, Talos Energy of Houston and Sierra Oil & Gas from Mexico. These companies are the first in close to a century to sink wells in Mexican waters.
The government has opened up the sector to foreign investment to encourage competition and better management of the natural resources. The project is already underway in the Sureste Basin off the State of Tabasco. Geological data indicate that the wells could be carrying up 500 million barrels of crude oil. This discovery has attracted a lot of attention from both local and international community. If the project goes on as planned, it could put Mexico in the list of top oil producers in the world.
The three companies were awarded the right to prospect in 2015 after the Mexican government decided to open up the oil and gas industry to foreign investment. The three companies will share the proceeds from the project at a pre-determined ratio based on their contribution to the project. Sierra will take home 40 percent, Talos 35 percent and Premier Oil will take home 25 percent of the profits.
About Talos Energy
Talos Energy is a Houston-based company that was established from a former oil and gas employees of another company. The employees invested millions of dollars in the company, and it has since proliferated. Talos Energy recently spent $600 million to acquire Helix Energy Solutions. Talos Energy focuses on oil explorations and oil & gas drilling.
Their Facebook Page: https://www.facebook.com/talos.energy/