In a landmark development, Houston company Talos Energy joined hands with Mexico’s Sierra Oil & Gas and the London-based Premier Oil Plc to sink a well together in Mexican waters. That is a watershed moment for the Mexican Oil & gas industry in that this is the first time since 1938 that the drilling of an offshore well has been allotted to organizations other than the state-run Petroleos Mexicanos.
This development is significant for the Mexican industry in the sense that the drilling of this well is the first instance of a non-Premex well being sunk since the opening up of Mexican waters as part of the process of reform being undertaken by the Mexican oil industry. There is no doubt about the fact that this development will be of immense interest to the industry, especially in light of the fact that geologically the drilling has a great chance of success.
Talos Energy is definitely the right kind of company to be associated with this project in the sense that it is a private upstream oil & gas company specializing in exploration and the possible exploitation or if need be the acquisition of oil and gas assets in the Gulf of Mexico and the Gulf Coast. They have sound financial backing from investment funds associated with Apollo Global Management, LLC (NYSE: APO), Riverstone Holdings LLC, and Talos management.
Talos Energy is renowned for their strategizing process for which their ownership of 33,000 square miles of cutting edge seismic data that pretty much covers the areas in their portfolio. That has helped them optimize their drilling inventory and be in a better position to take a call on acquisition or joint venture opportunities.
It is therefore just as well that they got involved in this seminal partnership with Sierra Oil & Oas and Premier Oil Plc in this important Mexican offshore drilling project. Success in this project, which by all indications is extremely likely should pave the way for many other similar forays in the area. That would augur well for both Talos Energy and the Mexican Oil Industry.