Talos Energy, an offshore oil company based in Houston, Texas, announced recently that they had found a huge amount of oil off the coast of Mexico. Their discovery could hold as much as 2 billion barrels of oil their spokesperson said. This was the first major oil find since the government of Mexico started allowing foreign companies to explore for oil in their waters. There is hope in the oil and gas industry that this could just be the first major find in that nation.
Their oil drilling operation is in shallow waters, approximately 37 miles from Puerto Dos Bocas, Mexico. Talos Energy named this operation Zama-1. It is located in waters that are 500 feet deep and they had drilled to a depth of 11,000 feet. The president and Chief Executive Officer of this company, Tim Duncan, stated that he expects it will take four years or more for Talos Energy to fully develop this find.
Both the executives of Talos Energy and analysts have said this is a major discovery with Tim Duncan saying that the company’s find is very, very big. People in the industry think this find will fuel more interest in drilling for oil in Mexican waters. There have been 15 to 20 big shallow-water discoveries in the past two decades with some calling Zama-1 the biggest one so far.
Mexico’s government had a struggling energy sector for decades. The government-owned oil and gas company was the only one allowed to search for oil in their waters which led to big issues. They started reforms in their energy sector three years ago which led to allowing Mexican oil companies to develop and foreign companies to search for oil. The oil find by Talos Energy is the first real result of their efforts at energy reform.
Since Houston is just across the Gulf of Mexico it meant that oil and gas companies located in that city showed a great deal of interest in developing operations in Mexico. Mexico started allowing companies to buy blocks of land to explore for oil in 2015. Talos Energy was one of the foreign companies to start exploring there.
To Learn More Click Here