Mexico nationalized its energy sector in 1938, a move that converted all petroleum reserves, facilities, and foreign oil companies operating within her territories into government owned entities. The decision ultimately brought the Mexican energy sector to its knees. However, in a rare change of heart, the country has decided to allow foreign companies back into her energy sector. Many international companies such as Premier Oil Plc, and Talos Energy LLC have welcomed the move by initiating their operations in Mexico.
Premier, London based and Talos, Houston based in conjunction with Mexico based Sierra Oil & Gas company , undertook to work together in drilling their first oil well, the Zama-1, in the Sureste Basin located in the state of Tabasco. The oil well will be the first to be owned by a private company in over 80 years. The well is estimated to hold crude oil in excess of 500 million barrels. The well is expected to be functional in three months’ time.
Analysts from many companies have welcomed the move by Mexico. Elaine Reynolds, an analyst at Edison Investment Research Limited, observed that the Zama well being the first non-Pemex well, would be monitored closely by all players in the industry. He further suggested that the project has a high chance of success owing to the structure of the basin around the well. Another analyst, Charlie Sharp referred to Zama as an interesting well because of the implications the well would have on the Mexican market.
Talos energy has witnessed unprecedented growth over the last few years. The company owns a 35% stake in the Zama well, and it has been tasked with the responsibility of managing the operations of the well. Talos recently acquired an oil and gas producing subsidiary of Helix Energy Solutions for $620 million. There have been talks of the company planning to make another major purchase at an estimated cost of over $500 million.
According to WorkplaceDynamics, Talos trounced its peers to emerge as the best workplace in 2013. Tim Duncan, the chief executive of Talos, notes that Talos employees are continually empowered to own part of the company. One of Talo’s employee, Ash Shepherd, was recently honored by Thirty Under 40.
Hussain Sajwani is a self-established billionaire at the heart of Dubai desert. According to Forbes list he is the third richest man in United Arab Emirates and worth $3.7 billion. He is the founder of Damac Properties.
On start of his career, his first business venture was to provide food services for United States army during operation Desert Storms and America Companies. He also supplied catering services in Abu Dhabi for the energy sector workers. The food business is still part of Damac group operation.
Damac Properties was founded by Hussain Ali Habib Sajwani in 2002. The company engages in real estates projects, development of commercial, residential and leisure properties. The company’s headquarter is based in Dubai, the United Arab Emirates. Hussain Sajwani ‘s firm works hand in hand with Engineering firms, construction firms and architecture real estate
In 2002, DAMAC properties developed some mid-market hotels in Deirah. Sajwani had already own and developed several properties, this was due to aggressive marketing and taking advantage of the recovery in UAE property prices when the Dubai government allowed aliens to own property in the Emirates. Before he started construction, he sold his first property -38-story residential building in less than six months after its purchase.
The US president, Donald Trump has associated with Hussain Sajwani as friends and business partners, through The Trump Organisation, Inc. that provides real estate development services. Both companies were working on the Trump International Golf Club that has luxurious villas worth $2billion in sales. Although President Trump will not get directly involved with the plans while in office, his children Ivanka, Eric and Donald Jr will maintain their brand as the Trump’s Family. Eric and Donald Jr recently attended the opening of the golf club in Dubai.
The Damac property firm model is based on three principles. First is to retain cash reserves, and government bonds. These policies ensures that when the market trends change its easy to maintain the construction schedule. Secondly, maintaining independent accounts so that each development supports itself. Thirdly, holding no debts for land; making sure that the land is fully paid. Damac properties also have branches in North Africa, Qatar and Saudi Arabia.