Oil sweet oil has come up from a well dug in the Gulf of Mexico by a group of private companies. This might not be newsworthy if it were not for the fact that the Gulf has not been an area open to private companies for nearly 80 years. Mexico has long ago nationalized its oil industry and only permitted the state-run oil company to drill there.
A deal was struck with Talos Energy along with two other private companies to allow them to dig oil wells in the Gulf of Mexico. Zama-1 is the name of the well that they are using, and Talos Energy has announced that they have made a significant find in the area.
An even better piece of news for Talos and its partners is that the oil field that they are operating in is now believed to have more oil in it than originally believed. While some early estimates pegged the amount of oil between 100 and 500 million barrels, the company now believes that there could be as many as 2 billion barrels down there.
This is the first sign of success of the energy reform that is currently taking place in Mexico. That reform has everything to do with letting the private companies come in and explore. It may help lead to calls for more projects like this. In fact, the old way of doing oil business in Mexico may well be headed for the dustbin of history.
Talos has put out a statement talking about how proud they are of their skilled employees in the area and touting how excited they are about the developments that are currently taking place down in the Gulf. Talos has a 35% stake in the Zama-1 oil well and therefore is very happy with how their investment has done so far.
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