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Huge Mexico Discovery By Talos Energy

Talos Energy, formed in 2012, is an independent oil and gas company headquartered in Houston, Texas. There expertise is producing offshore hydrocarbons in the US Gulf of Mexico as well as offshore Mexico. Talos Energy was formed for the purposes of buying assets in the Gulf of Mexico regions with emphasis on optimization, exploitation, and exploration.

Most recently Talos has made headlines for discovering 2 billion barrels of oil in Mexico. This is significant because this is the first major find since the country allowed foreigners in its oil and gas fields three years prior. Talos found this treasure about 37 miles from Peurto Dos Bocas, which is on the southern coast of the Gulf. Tim Duncan, the president and chief executive of Talos Energy, says this is going to be a work in progress. For the company to truly develop this huge finding it could take years.

A discovery like this should drive more companies to want to drill on the southern border of the U.S. It should also drive interest in developing the Mexican gas and oil fields. Mexico removed restrictions from its gas and oil market in 2014 breaking the ownership of the state oil company, Petróleos Mexicanos, also known as PEMEX. This invited foreigners to drill and build refineries with the hopes of shifting the country’s lagging energy revenues.

In 2015, Mexico began auctioning off areas of land to drill which was especially enticing to Houston companies like Talos. But, this was all in bad-timing due to the oil price crash, resulting in lack of attention that the country has wished for. When President Donald Trump got into office, this caused issues. His views on immigration and trade made Mexico a target.

Duncan said none of this deterred the company and competition was meager then. Mexico only awarded two of the 14 blocks that were up for bid; Talos winning them both. This has now become a lot more competitive with several competing oil companies getting in on the bidding. Talos Energy hopes they can continue to develop the well holding 35 percent interest in it.

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