The Mexican government nationalized oil mining over 80 years ago and closed the oil and gas industry from private investment. The 1938 decision was reversed in an electoral vote back in 2012 to aid the ailing energy industry from the state-run monopoly of Petroleos Mexicanos. Immediately after, bids were made for companies and joint ventures to secure the right to explore the Zama-1 Well. A bid by three companies who intended to pursue the prospect as a joint venture sailed through. The three companies were;
Premier Oil Plc (based in London),
Talos Energy LLC (American and Houston-based),
And Mexican Sierra Oil and Gas.
The companies already had an agreement that described how they would split the costs and revenue shares. The Mexican company was entitled to 44 percent, the American company was entitled to 35 percent and the British company was entitled to 25 percent.
The commercial news world reacted boisterously to the new development of the lucrative oil prospecting contract on the Zama-1 Well. The Mexican government was also very firm in asserting that they would keenly follow the drilling to ensure that compliance would be upheld to protect the Mexican marine ecology. Such concerns were genuinely placed as the Zama-1 Well sits in the Sureste Basin. However, the fact that the oil well sits in the Sureste Basin also meant that the prospect had better geological chances of success because of the favorable structure of the basin.
The drilling expedition was estimated to take the three companies about 90 days to complete. According to tax reports, the joint venture had set aside over 16 million dollars for drilling alone. Talos energy and its partners estimate that the well holds about 200 to 500 barrels of crude oil.
Talos Energy LLC
Talos Energy is the winner of the 2013 WorkplaceDynamics’ Best Workplace among Local Small Businesses. It has always received praise from its main investor and regulator, Apollo Global Management, for having the most efficient and motivated employees in the American oil industry. It is a private company that focuses on prospecting for oil and acquiring oil properties in the Mexican Gulf and the Gulf Coast for exploitation. The company’s human resource department claims that it has an equity program where it allows its geologists and other specialist to share equity for any major oil discoveries that they make.