In a move to display their willingness to allow foreign entities access to their country’s energy markets, Mexico has permitted an offshore oil well placement by a private company for the first time in eight decades.
The venture is a collaborative effort between Premier Oil, a company based in London, Talos Energy of Houston, and Mexico’s own Sierra Oil and Gas. In a statement prepared by Premier, it was noted that the last exploration offshore not commanded by a company run by the state was the effort made by Petroleos Mexicanos in 1938.
Premier also explained in the statement that the well, known as Zama-1 is located off the shores of the state of Tabasco in the Sureste Basin and will hold up to 500 million barrels of oil. The three companies were the winners of a bid that took place after the decision was made by Mexico to make the country’s oil industry available to private investors.
Analyst Charlie Sharp says that the drilling in Mexico is one of the most interesting drilling prospects to take place in years due to the potential impact the move can have on the Mexican oil and gas markets.
Talos Energy is responsible for all operations pertaining to the Zama-1 well.
About Talos Energy
Talos Energy LLC is an oil and gas company headquartered in Houston that focuses its efforts on acquisitions and exploration of oil and gas in the Gulf Coast Region. Talos was founded in 2012 and is led by a team of highly qualified professionals with decades of experience in the oil and gas industry. The foundation established by the skilled and experienced team has positioned the company to rapidly grow in activity and reputation while remaining committed to performing operations that are both safe and compliant with environmental protection protocol.
Obsidian energy is a company based in Canada that specializes in the production of oil and gas. The company which was formerly known as Penn West Petroleum Ltd rebranded in June 2017 as part of its growth strategy. This was after a major restructuring that led to its reinvention in all aspects of the business that gave it a fresh start. The critical areas that Obsidian Energy adopted after rebranding included three principles where it incorporated discipline, being transparent to shareholders, and continuous innovations.
Obsidian Energy Company’s Operations
The oil and gas producing company is a medium sized firm that produces an approximate of 30,000 boe daily. It leverages its accountability to its partners, shareholders, and to communities in the region they run the company. Further, Obsidian Company has its oil and gas fields situated along the Western Canadian Sedimentary Basin in Alberta, Canada. The petroleum reserves in that region are said to be among the largest in the world where production is done from three areas known as Alberta Viking, Pembina Cardium, and Peace River Oil Sands.
Moreover, Obsidian Company had previously been hit by a financial and operational crisis in 2014 when the crude oil prices went down. As a result, the company encountered a series of restructuring where it sold most of its assets in the two subsequent years to offset the high debt it had incurred. What’s more, the debt which was almost $3 billion was significantly reduced after the sale of its assets to $384million as at March 2017. Also, with the rebranding of the company saw the stock symbol in both the New York Stock Exchange and Toronto Stock Exchange substituted with the “OBE” symbol.
Nonetheless, with Obsidian reinventing itself saw the brand become more proficient and stronger in its operations. Better still, the company’s president and chief executive officer known as David French stated that Obsidian had a strong balance sheet and was integrating a hedging plan that would see them lower prices. Additionally, with the downsizing of the Penn West Company through the sale of its assets reduced company production from 135,000 in 2013 to 28,000 barrels after it scaled down. See This Page to learn more.