Talos Energy, the Houston-based exploration and Production Company was recently presented with the ‘Discovery of the Year award’ during the annual explorations awarding ceremony in London. Talos Energy won the award after discovering the Zama oil well in offshore Mexico in mid last year. The Association of International Petroleum Negotiators presented the prize to Talos Energy following the once-in-a-lifetime discovery.
Zama oil well was the first offshore exploration to be done successfully by a private company in Mexico. According to Talos Energy C.E.O, Zama oil discovery was a big win for the privately held company considering that private companies were licensed to explore and drill oil in Mexico a few years ago. Talos C.E.O and Chairman referred to Zama discovery as “both a historical and significant discovery by the firm.”
The newly discovered oil well is expected to produce between 1.4 and 2 billion barrels of crude oil. Talos Energy is the major player in the Zama oil well where it controls 35 percent of the project. Other companies with interests in the Zama oil well include Sierra Oil and Gas Company that holds 40 percent while Premier Oil Company holds 25 percent stake in the oil well.
The Zama oil well runs to a water depth of 165 meters. According to Talos Energy, Zama oil well is among the high-yield discoveries by the company that has had relatively low capital requirements. It is among the few discoveries where the company took a short period before commencing the first production.
Zama oil well beat other discoveries such as Hess, ExxonMobil and Nexen’s Ranger during the nominations where more than 200 top business leaders vote for the most extraordinary discovery. According to Timothy Duncan, winning the awards is a clear indication of the success of Energy reforms in Mexico. The new energy reforms have continued to attract more investors, creating more jobs, as well as generating revenue for the government.
Talos Energy has already entered into negotiations with Pemex, a company holding licenses for the neighboring oil block over the pre-unitization agreement. The agreement will set terms on how the two companies will evaluate the hydrocarbon reservoir and reach to a common field development plan.