In 2014, Mexico opened up to foreign interests for the purposes of spurring exploration and boosting revenues—breaking the monopoly of PEMEX in the process.
* Talos Energy, a Houston-based offshore energy production company, announced on Wednesday morning the discovery of oil about 37 miles from Puerto Dos Bocas, near the southern coast of the Gulf of Mexico. The well, named Zama-1 is under 546 feet of water and has an initial vertical depth of about 11,000 feet. It’s estimated that the field holds 1.4 billion barrels of oil-in-place, and as much as 2 billion.
* This is the biggest find in the Gulf region by a private company in nearly 80 years, according to David Hunn, author of the article “Houston’s Talos Energy makes ‘significant’ find in Mexico’s waters”. Talos Energy holds a 35 percent stake in the well, sharing it with Sierra Oil’s 40 percent, and London’s Premier Oil’s holdings of 25 percent. Talos and partners plan to drill to 14,000 feet.
2 billion barrels of oil discovered in a shallow water deposit off the coast of Mexico, the first and most significant discovery since 2014; the year when Mexico deregulated it’s oil and gas deposits to foreign business.
This comes on the heels of Mexico’s 2015 auctioning land blocks for drilling.
Tim Duncan, of Talos Energy, calls it a “very, very big” find. He only regrets that development operations on such a large find cannot be conducted quicker
Analysts and Talos executives consider the Zama-1 oil field an important discovery. They expect it to direct more attention to oil drilling south of the US. Even more significant for Talos is the fact that it is the first significant find for their company in a long time. Employing about 200 individuals and annual revenues of $500 million, striking oil at Zama-1 was celebrated by the company.
Despite the oil price crash and thieving of PEMEX gasoline (about 7,000 incidents in 2016), this hasn’t dissuaded Duncan, Talos CEO. From the 2015 auction, only two out of 14 blocks were sold, with Talos and its partners winning both.
Duncan hopes to develop the field while service costs are lowered (which are lowered by the artificial oil glut of recent times)
Sam Dean, in his article “Premier Oil shares rocket after ‘world class’ oil discovery” discusses Premier Oil share prices and Premier’s comments on its recent striking of oil and Zama-1, the world’s newest oilfield located in the Gulf of Mexico was announced by a consortium of energy companies. They are Talos Energy, Sierra Oil & Gas, and Premier.
Talos calls Zama-1 as a “Historic and significant discovery” when the field was estimated to contain 1.4 to 2.0 billion barrels.
Premier, a London-based firm, found share prices surging by more than 30 percent in trading for its session.
In the last month, Mexico auctioned off 10 of 15 land blocks in the fifth auction since deregulating its oil and gas sector, which began in late in 2013.
The consortium will begin drilling next year, determining the next steps for their operations in the region and abroad.