Mexico’s oil and gas industry has been struggling for a while. This is in large part due to the fact that they nationalized the industry in 1938. For almost 80 years, the only company that could sink wells and drill of the coastal waters of Mexico was the nationalized monopoly called Petroleos Mexicanos (Pemex). However, due to failing numbers and a suffering Mexican economy, the government finally decided to open up its energy market to private investment again.
In 2015, a bidding process took place in which three companies came out ahead: Talos Energy out of Houston, Premier Oil from London, and Sierra Oil and Gas from Mexico. The international project is under way, with the well being sunk off the Sureste Basin near the state of Tabasco, Mexico. The well is estimated to have anywhere from 100 to 500 million barrels of crude, according to experts. Because of this, combined with the international investment going on, it is attracting a lot of industry attention.
The split of the profits will go to the companies in certain percentages. Sierra will receive 40%, Talos 35%, and Premier 25%. Time will tell how successful the project is, but the geology and location of the well promise great results, industry experts predict and more information click here.
Talos Energy is leading the way on the project. The Houston-based company was founded from former oil and gas employees of another holding firm. With hundreds of millions of dollars of investment, they started the company and have since grown it rapidly. They have already acquired another oil and gas company called Helix Energy Solutions for $600 million and what Talos Energy knows.
The company’s main focus is on the discovery, drilling, and production of oil off the Gulf Coast and Gulf of Mexico. The company is already growing with an estimated $500 of revenue this year. Thanks to the private company’s growth, employees are well compensated by having a share of the equity. The management says this motivates people to get along as a team. In addition to the finances, there are additional perks such as daycares at the office and happy hours to relax on Fridays and Talos Energy’s lacrosse camp.
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