For the first in a decade, a private firm is shining in the Mexican oil trade. For an extended period, the Mexican government had banned any oil mining by any other firm other than the state run monopoly. The trend is, however, changing after the nation allowed foreign investors back into the rich oil reserves.
Talos Energy LLC has formed a partnership with Premier Oil Plc and Mexico Sierra Oil and Gas. The three firms began operations in the late May. It is the first time that an offshore exploration is being launched by a new company other than Petroleos Mexicanos the state run monopoly. The monopolized firm has been in existence since 1938.
Drilling crude oil out of the main Zama-1 basin is expected to take a whopping $16 million. It will also take the Talos Energy LLC over 90 days to complete. Once complete, the reservoir will have the potential to give approximately 100 to 500 million barrels of oil.
The partnership between the three firms has acted to their advantage. They can share resources and share the expenses together. They are also able to brainstorm ideas, ensuring that only the best leave the boardroom.
Tim Duncan together with other owners of Talos Energy LLC has invested over $600 million towards the cause. Such a huge investment amount only serves to remind you how profitable the oil venture is in Mexico. The Talos Energy LLC has also acquired assets previously owned by the Gulf of Mexico. By the time of the takeover, Gulf of Mexico produced a minimum of 16000 barrels of crude oil in a single day. The Talos Energy LLC also took some of its staff, making the firm employees at slightly above 120 employees.
Talos Energy LLC has been recognized due to the role it plays in the running of small businesses. Duncan, the firm CEO advocates the cause of success to teamwork, dedication and hard work from various stakeholders and employees. Despite the fact that the company may not win an award based on compensation, the firm believes that it has invested so much on the right team. These include geoscientists, receptionists and all the other employees.