Published: Sat, July 15, 2017
Culture | By Antonia Gonzales

Mexico Discovers Important Oil Reserve in Gulf

Mexico Discovers Important Oil Reserve in Gulf

In 2014, Mexico deregulated its oil and gas market and broke the monopoly of the state oil company, Petróleos Mexicanos, known as PEMEX, inviting foreign companies to take part, with hopes of spurring exploration and production and boosting the country's sagging energy profits.

Eni made a shallow-water discovery in March. Mexico is also planning to hold four more oil and gas block tenders by November 2018 as part of efforts to ensure the sustainability of its energy industry and make better use of its hydrocarbon reserves.

"This is a historic and meaningful discovery", said Tim Duncan, President and CEO of Taloes, "and we could not be prouder of our highly qualified team from both Mexico and the United States". The closest well drilled, a dry hole, was more than 12 miles away.

He added: "We believe that this discovery represents exactly the objectives of energy reform: new capital, new participants and a spirit of ingenuity that will generate new local jobs and income for the Mexican government".

When Premier Oil and its partners spudded the Zama-1 exploration well in May, the estimates were for as much as 500 million barrels of oil in place. Ironically, the JV's bids were the only two successful ones in the round.

The well reached an initial shallow target vertical depth of approximately 11,100ft (3383m). The Operator is now setting a liner to protect the discovered reservoirs, prior to drilling deeper exploratory objectives to a total vertical depth of approximately 4,200 meters. Light oil has so far been recovered to surface. It is particularly pleasing that our strategy of focusing our exploration portfolio on high impact opportunities in proven but under-drilled basins has led to this world class discovery with our first well in Mexico.

Oil majors are snatching up offshore blocks in Mexico, with the latest auction exceeding expectations.

"There are no plans for immediate tests in the well", Duncan said.

Sierra holds 40% equity in the project, while Talos and Premier hold 35% and 25% respectively. Meanwhile Talos' well is in an as yet unexplored area.

Talos and Premier were awarded Blocks 2 and 7 in 2015, under Mexico first tender of oil and natural gas fields in over 80 years.

It appears that Talos and its partners will be nicely rewarded for being first.

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