Pemex, a state-run energy firm operating in Mexico, is teaming up with Talos Energy to develop a new oil and gas discovery in the Gulf of Mexico.
Talos Energy has been making moves in the Gulf of Mexico after recently acquiring Stone Energy in a $2 billion merger. The move was part of a series of decisions which increased their presence in the Gulf of Mexico in a time when many companies were suspending operations there. The departure of rival firms left open a prime opportunity for Talos Energy, and they began acquiring interests in the gulf.
Mexico has undergone deregulation as of late due to new leadership in the country. The result has been called the Zama project, and last year Talos Energy discovered a major oil deposit. The find could yield up to 800 million recoverable barrels of oil.
This is adjacent to the area where Pemex is operating, and the Mexican company could be drilling its own well by year’s end. The partnership between Pemex and Talos Energy, along with other firms, means that the companies will share data and work together to increase production in the area. President-elect Andres Manuel Lopez Obrador has indicated he will strengthen Pemex when he enters into the office of the presidency in December.
Obrador has also placed hope in companies like Talos Energy to help end a production slump which dates back to the early 2000s. Mexican officials have approved a $325 million plan for the Zama project in which Talos and the group will drill two new wells, slated for a mid-2019 completion date. The start date for drilling is planned for the end of November. The whole project has a goal of 100,000-150,000 barrels a day by the year 2023.
The delays are due to the logistical realities of drilling in the gulf. Team officials point out they will have to construct many platforms in 500 feet of water. They are confident that the gas will make its way to the local market as planned.