After 80 years of Mexican monopoly over its oil wells, the country has reopened its energy sector for the international competitors to enter. A joint venture was formed between London’s Premier Oil, Huston’s Talos Energy, and Mexico’s Sierra Oil and Gas. All three companies won the rights for the project in 2015 when Mexico opened to the open market.
The Zama-1 well holds between 100 and 500 million barrels of crude oil and will cost $16 million over the course of 90 days to drill. This project, being the first time in 80 years any outside company has drilled in Mexican waters, will be closely watched by the entire industry. Due to the basin’s structure, the project has, “high geological chance of success” says Elaine Reynolds of Edison Investment Research. Talos, despite being the operator of the well, owns only 35% stake in the venture, Sierra owns 40%, and London’s Premier owns 25%.
About Talos Energy
The financial crisis forced Tim Dunkin and his partners to refine their explorations for oil only to the most lucrative spots. They managed to succeed, sold the company to Apache Corp, and then started Talos Energy, based in Houston. The company has 120 employees and is very successful.
WorkplaceDynamics has awarded Talos the best workplace among small business. Dunkin explains that they achieved this by placing a “piece of equity pie” in the hands of every employee that works for them. Management takes all the risks on themselves, while employees take the rewards. The company has a projected revenue of $475 to 500 million and is looking to expand more. His employees all know this is a team effort and that every action they take can either make or break them. Dunkin encourages his employees to come up with ideas to share as this is the same encouragement he received to climb up the corporate ladder. An employee told WorkplaceDynamics that Talos is a small enough company that they feel their actions have an impact on the company itself. It is this type of mentality which has led to their success.
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