Talos Energy is Barely Five Years Old but is Already Making Shock Waves in the Oil and Gas Industry

Some of the largest companies in the world operate in the oil and gas industry. Considering the fact that oil is the most traded commodity on earth, this is an understandable state of affairs. Additionally, since the oil and gas industry is significantly capital-intensive, one rarely sees new players join the market, and even when they do, they typically decades to properly establish themselves. One company that has, however, gone against this typical trend is Houston-based, Talos Energy. Despite only being formed five years ago, the company is one of the fastest growing in the operational area of offshore oil extraction and development.

Much of Talos Energy’s recent success stems from its investment in an offshore oil well in Mexico. In fact, Talos is one of the first foreign companies to own and operate an offshore oil well in Mexican territory for the last eight decades. For long, the Mexican government had been jittery about letting non-Mexican oil companies get involved with its oil and gas resources. Therefore, the fact that Talos was chosen to be among the first exceptions to Mexico’s long-held fear shows that it is indeed a reputable and trustworthy organization.

Talos Energy’s operations in Mexico have also greatly been helped by the fact that the company has a number of partners. It owns the Mexican well, Zama-1 in collaboration with the Mexican company Sierra Oil and Gas, and the British company, Premier Oil Plc. The well is estimated to hold oil reserves in the region of 100 to 500 million barrels. Talos, therefore, stands to make a healthy profit once drilling is complete as its total stake in the well is 35 percent.

Talos Energy is quite small compared to the major players in the global oil and gas industry. The company has achieved a lot with the $600 million equity injection that was used to form it in 2012. Its consistent positive returns have recently also allowed the company to get into a finance-sourcing deal with Apollo Global Management. Moving forward, therefore, the company will have greater flexibility to makes moves similar to the ones it has made in Mexico.

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