In August 2014, Mexico passed into law legislation that would allow international oil companies to erect and operate oil platform in the Gulf of Mexico. Such a thing has not been done for more than 80 years. Earlier this year, for the first time in 80 years a private company put a new offshore oil platform in the Gulf of Mexico. The platform project is a joint venture between Premier Oil Plc, Talos Energy, and Sierra Oil & Gasbegan. Since 1938 all new oil platforms were started by the state-run Petroleos Mexicanos.
As part of a reform process, Mexico recently opened up its waters to international companies. The first collaboration is only the first of many that are anticipated. The drilling began in May and is expected to be completed sometime this month. All three companies will each own a significant portion of the platform, but Talos will be its operator. Talos Energy’s story starts back in the financial crises of the last decade. The tanking commodity prices at that time convinced Tim Duncan to rethink their investing strategy and to only invest in the most lucrative and promising areas.
It paid off and in 2013 big time and they ended up with $600 million, with which they started Talos Energy. Soon they had 60 professionals stationed in Houston and were producing 16,000 barrels of oil per day. They have since also added 120 various workers in the Gulf of Mexico. And Talos continues to do extremely well. It was recently named by WorkplaceDynamics as one the best places to work. Duncan, who remains the company’s CEO, is extremely optimistic about its future. And as its leader and founder, he has put some of the company profits into the pockets of employees.
Talos is just one of many international oil companies fully anticipated to drastically affect the future of the Mexican oil industry in various ways. This future is a bit unpredictable. It is not clear whether it will be positive or negative. Time will tell and in the meantime, the Mexico oil reform will progress.