Recently this past year, Talos Energy has announced the discovery of a large oil deposit holding over 2 billion barrels which also include an estimated amount of 800 million barrels of recoverable reserves. This discovery, however, has also led to the discovery that the oil deposit may also extend into an adjacent block owned and operated by Pemex, Mexico’s state-run oil company.
Tim Duncan the CEO of Talos Energy quickly informed his company and the public that they will attempt to form a partnership with Pemex in order to share data collected during the Zamas project and vice-versa. A partnership between the two companies could dramatically increase the success of the project. However, this is a problem with this proposal, Pemex has not done business with any private company since it’s establishment in the 1930’s. The Mexican government at the time were opposed to any such deals where partial control would be given to another entity. The decision would turn out to be very profitable to the government because soon Pemex was right at the same levels as other oil companies around the world. It was not till years later that allegations of corruption within the company forced the Mexican government to lower the budget to about 1/3 which in turn affected the production and profits of Pemex.
Although the call for partnership deals would have been impossible any other year, Tim Duncan knew he could count on Mexico’s president-elect Andres Manuel Lopez Obrador who during his campaign pledged to strengthen Pemex to its previous position. During the meeting, president-elect Obrador commented that Talos Energy didn’t have to worry about urgency as himself and Pemex are ready to work together.
After the rather quick approval of the proposal by the Mexican oil regulations department, the plans where in place to continue the Zamara project which will have drilling begin at the end of November 2018. By the year 2023, Talos energy and Pemex see the well to be producing over 150,000 barrels per day.