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.