Houston-based Talos Energy made history last year when it became the first American oil exploration company to sink a well in Mexican territorial waters. Better yet, it made what is potentially an extremely significant find. Dubbed the ZAMA-1, the well in shallow waters off the coast of Tabasco may hold up to two billion barrels of crude oil.
Now Talos is moving ahead with further arrangements with the Mexican national oil giant Pemex to drill two more wells adjacent to ZAMA-1. If all goes well, more productive sites will be opened up. Then work can began in earnest on bringing oil from beneath the seabed of the Gulf and out into the market.
Plans call for production of potentially 100,000 to 150,000 barrels a day from the site by 2023. Mexican officials approved an appraisal plan for ZAMA in September. It is expected two new wells adjacent to the ZAMA block will cost $325 million. Talos CEO Timothy Duncan said his company is moving ahead to put together a comprehensive partnership plan with Pemex to move the project forward.
The ZAMA initiative also includes other partners. Joining Talos Energy are Premier Oil of the United Kingdom and Sierra Gas & Oil, a Latin American energy exploration firm. These three entities, along with Pemex, constitute a consortium that will work in cooperation to develop these significant finds in the Gulf of Mexico.
Talos Energy was formed in 2012. Under the leadership of CEO Duncan, the wildcatter is concentrating its efforts in the Gulf of Mexico. Drilling beneath the waters of the Gulf is viewed as more risky than working on dry land, such as in the Permian Basin of Texas, but with a potential of much greater payoff over longer periods of production.
Talos Energy has adopted a policy wherein it is not only willing, but eager to explore for fossil fuels where other companies are not interested in operating.
Working with the Mexican government and Pemex is also seen as innovative and historic by industry observers. Mexico only recently opened its territory to foreign involvement since it nationalized its oil industry in 1938. Click here