The companies are the first to benefit from the law that was passed in 2015, allowing foreign and private oil companies to invest in Mexico. The entry of foreign companies is seen as a way of injecting competitiveness and consequently salvaging the ailing industry.
High Probability of Success
Approximately $16 million is expected to be pumped into drilling the well that is situated in Sureste Basin. Once complete, the well is expected to produce barrels of crude, ranging between a hundred and five hundred million. This is a huge step in the Mexican energy sector, particularly in the country’s offshore exploration sector.
Premier Oil announced the groundbreaking for the well. Commenting on the project, analysts predicted that it would have a high probability of success- geologically. Elaine Reynolds from Edison Investment Research Ltd., one of the notable analysts to comment on the project, said that every stakeholder in the industry would be watching to ensure that nothing would go wrong. He noted that the project is the one that will show the real effect of the 2015 energy reforms in the country. Charlie Sharp, a senior analyst at Canaccord Genuity Ltd., termed the well as an interesting exploration.
More about Talos
WorkplaceDynamics honored Talos Energy LLC as the local small business that offered the best workplace experience in Houston in 2013. This was after the company’s $600 million investment in the Gulf of Mexico oil industry that saw its employee population rise from 15 to 120.
Still in 2013, Talos Energy made about $500 million in revenue. This revenue increase enabled the company to acquire the Helix Energy Solutions, a gas company that cost Talos a whopping $600 million. Talos’ success can be attributed to the highly experienced executive team led by Michael Herding and Tim Duncan.