On Wednesday, July 12, 2017, Talos Energy announced an oil find that has the potential to produce up to 2 billion barrels of oil. The discovery was made 37 miles from Puerto Dos Bocas located off the shore of Mexico. This is the biggest discovery since Mexico opened foreign oil exploration three years ago. This also is also the first discovery by a private company in 80 years.
Talos Energy is a small Houston oil company that saw the opportunity that was presented when Mexico deregulated its oil and gas market in 2014. The deregulation allowed the end to the monopoly of Petróles Mexicanos or PEMEX which made the Talos Energy find possible.
When Mexico started to auction off blocks of land for drilling in 2015, it was not as successful as they had planned due to the oil prices crashing. Also, the theft of gas from PEMEX pipelines increased from 200 incidents a year to 7000 incidents a year which cost them 1.7 billion dollars. Fortunately, this did not affect the CEO of Talos Energy, Tim Duncan, from bidding at Mexico’s first auction. Others have joined on which gives Talos Energy 35% ownership, Sierra Oil and Gas 40% ownership, and Premier Oil 25% ownership. Tony Durant, the chief executive of Premier Oil, is ecstatic that he has joined. He stated that the oil find adds to the companies assets.
Zama-1, the well used to discover the oil, is in 546 feet of water and has reached a depth of approximately 11,000 feet. They plan to continue to drill until they have reached a depth of 14,000 feet.
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