It’s been nearly 80 years since anyone besides Mexico’s state-owned oil company has established a new offshore oil rig in Mexico’s waters. In a recent turn around they are now allowing private companies, including foreign ones, to compete in the country’s energy markets.
The first oil well to be drilled is being handled jointly by a trio of companies from different nations. Premier Oil Plc is a UK-based company, Talos Energy LLC is American, and Sierra Oil & Gas is based in Mexico. They are working on a well that has been named Zama-1 and is situated in the Sureste Basin which lies off the shores of the state of Tabasco. It is believed to hold anywhere from 100 million to 500 million barrels of crude. The drilling operation to access the crude should take under 90 days and will the $16 million cost will be borne by Premier Oil.
Once the drilling operation is complete the rig will be operated by Talos Energy, who holds a 35% stake in the joint venture. Premier will have a 25% ownership stake and Sierra Oil & Gas has a share of 40%.
Talos Energy is a company that explores for sources of oil and gas as well as acquiring it. Their main region of exploration is along the Gulf Coast as well as the Gulf of Mexico. They are a privately held company and are financially backed by Riverstone Holdings, LLC, Apollo Global Management, LLC, and the executive team at Talos Energy.
Talos Energy employs around 120 people including engineers, geoscientists, and support staff. It was recently honored by WorkplaceDynamics as one of the best places to work in the Houston, Texas region. While compensation at Talos Energy is average for the industry the employees have been given a stake in the company’s success through equity in it. The chief executive officer of the company, Tim Duncan, has said that they do compensation this way as they want everyone working together in the right direction. Because it’s a privately held company no analyst can put a figure on how much the company is worth, which Duncan said means that he and his team at the company are the ones to determine that through their hard work.