How the Recent Oil Reforms have Improved Mexico’s Oil Sector
Mexico is one of the few oil producing countries in the world. However, regardless of being in possession of this great mineral resource, the country is yet to benefit from it due to its inefficient state-controlled oil drilling company. Not anymore. Thanks to the recent reforms in the industry, the Mexican government has opened up its ailing oil industry to the services of privately owned drilling industries.
The new developments will see the industry benefit from the services of three companies. Among the companies that were awarded the contract include Talos Energy LLC, a Houston-based company, Premier Oil Plc, London-based, and Sierra Oil & Gas, Mexico’s based company. These three companies won the tender to drill this resource in 2015 during the first bidding process; however, they began the drilling process on May 21st this year.
Like in any industry, the Mexican oil industry is expected to benefit immensely from these three drilling companies expertise, quality equipment, and timely service delivery. According to the contract, the companies are expected to drill the Zama-1 well located at the Surest Basin in the State of Tabasco. Ideally, this basin holds approximately 100 million to 500 million barrels of crude oil. With such huge volumes, the work is approximated to take three months. If anything, this is one huge milestone for the companies, but one they are prepared to pull through. Elaine Reynolds, an analyst in a London-based investment research group, notes that this process is one that will be closely monitored in the economy. However, judging from the structures put into place, she is confident that it will be one with positive results.
About Talos Energy
Talos Energy is private equity firm that is involved in gas and oil offshore exploration and production. Currently, the company has its headquarters in Houston. In addition to the Mexican exploration, the company has been involved in a number of projects around the Gulf Coast region.
The company enjoys a highly skilled and competent workforce that makes their services competitive. In addition to this, Talos Energy has highly invested its resources in state of the art infrastructure that has helped them establish the reputation they enjoy in the industry.
For more information find Talos Energy on Facebook.