For the first time in nearly 80 years, a private energy company is being allowed to drill off the coast of Mexico. This is the most recent effort of the Mexican government to help revitalize its slumping oil industry.
Houston-based Talos Energy has partnered with two other companies to drill in the Sureste Basin located off the coast of the Mexican state of Tabasco.
Why Is This Significant?
Back in 1939 Mexico decided to nationalize its oil industry and it has been dominated by the state-run Petroleos Mexicanos ever since.
Talos and its partners will become the first private companies to drill off the Mexican coast since the move to nationalization.
It has been estimated that the Zama-1 well could produce 100 million to 500 million barrels of oil and is expected to take 90 days to complete the operation.
Talos Energy Partners
The group won the right to drill off the coast of Mexico back in 2015 after the Mexican government decided to open up drilling to private companies.
Many energy analysts are watching this project closely as they believe that there is a “high geological chance of success.”
It remains to be seen if those predictions will come true, but Talos and partners will make a go of it and hopefully open up Mexico’s energy exploration to other private companies around the world. This would help increase competition and drive down energy prices for consumers.
About Talos Energy
Talos Energy has extensive experience in energy exploration in the Gulf Of Mexico and The Gulf Coast region of the United States. They use cutting-edge seismic technology to increase hydrocarbon recover through their specialized drilling techniques.
The company has consistently been ranked as one of the top places to work by the Houston Chronicle since 2013. This reflects the company’s collaborative and entrepreneurial culture and its innovative technologies.