The first offshore oil drilling well, by a private company, in more than 80 years, has been established in the Mexican waters. Three companies, Premier Oil, Talos Energy and Sierra Oil & Gas went in on the massive project together. After Mexico voted to open its ailing oil industry to private investments, the three companies bid and won the rights to the project.
It is estimated that the Zama-1 oil well, located in the Sureste Basin, has between 100 and 500 million barrels of crude oil. Despite the massive amount of oil that is expected to come from the well, drilling is only expected to take up to 90 days; however, those 90 days of drilling will cost a whopping $16 million dollars.
Talos is the company operating the oil well and holds a 35% stake in project. Sierra Oil & Gas holds the highest stake at 40% and Premier Oil holds the least amount at 25%.
Luckily for these companies it is widely believed, within the industry, that there is a high geological chance of success. There is little doubt that, as the first private oil well, the project will be closely watched within the industry.
Talos, one of the companies in on the project, is an independent oil and gas company based out of Houston, Texas. The company is committed to their operations being safe and environmentally compliant. They also have a continuous goal to find and develop new and better ways to operate projects.
The majority of Talos’ operations take place in the Gulf of Mexico and along the Texas and Louisiana Gulf Coast. They have seen a lot of success in this area producing more than 16,000 barrels of oil per day last year. Talos is on the hunt to expand and grow their business and, with between $475 and $500 million in revenues this year, they are in a position to do just that.