Talos Energy’s acquisitions and expansion strategy

After more than 8 decades, a private company finally decided to drill a well in the waters of Mexico. This was a way for the country to create competition in the energy industry. Premier Oil, Mexico’s Sierra Oil & Gas and Talos Energy joined hands and the project began in May. Prior to this venture, the industry was a monopoly which was run by Petroleos Mexicanos. It was a big change in the country considering the norm since 1938.

The well, Zama-1, that was being drilled was expected to produce one hundred to five hundred million crude barrels. The well is located at the Sureste Basin. Drilling was going to take an average of 3 months. The companies won the bid in 2015 when the industry was opened to private investors due to the suffering that this industry was undergoing in Mexico at the time. This investment is been watched closely by many people as it is one of its kind.

Talos Energy holds 35 percent of the Mexico oil drilling venture. It is the second largest investor after Premier Oil. Tim Duncan alongside his partners began Talos Energy with equity worth 600 million dollars and assets from previous investments. This company has been named as one of the ideal workplaces by WorkplaceDynamics when their work and social ethics are taken into place. Even if they are not the best paying employers, they give equity shares to their employees. Duncan is the CEO at Talos Energy and he is focused on building an empowered team through his strategic management.

Talos Energy acquired a Helix Energy Solutions’ subsidiary, Energy Resource Technology GOM Inc., to enhance their productivity in gas and oil. It cost them a sum of 620 million dollars and they are in the market again looking to make an acquisition of yet another company for 475- 500 million dollars. The company’s goal is to expand further as they create more employment opportunities. Duncan is growing Talos into a big company through his experience and leadership skills. He is a known figure in the industry and his opinions have been highly held by people in senior positions. The headquarters of Talos Energy is in Houston. The company continues to acquire gas and oil companies to expand its production in Mexico.


The First of Many for Talos Energy

Talos Energy referred to as the number one small company operating within the petroleum industry only a year after its establishment in 2012, has continued its success after the discovery of an offshore oil well in Mexican waters earlier this year. The company is joined by two other; Sierra Oil Plc and Gas & Premier Oil, who have collectively declared that drilling will be completed with an estimate of 90 days. These companies along with Talos Energy in 2015 won the prospective rights to the well after Mexico initialized private investments in its oil industry.

Edison Investment Research Analyst, Elaine Reynolds asserts that within this occurrence of national correspondence for the first time in 80 years, the success of this joint project is highly possible. Talos Energy, as one of the leading operators, has maintained close vigilance since the drilling began earlier in May. With offshore hydrocarbon production as its area of expertise, the company’s investment and exploration of Mexico are of significant value as the task draws nearer to completion. Its innovative techniques are highly notable by its partners Apollo Global Management and Riverstone Holdings as it continues to strengthen ties with Mexico and surrounding assets.

As the first foreign petroleum business operating in Mexico, the Houston-based Talos Energy is inarguably the right management for the verging historic project that is set to produce a minimum of 100 million barrels of crude. It’s main points of business located at the Gulf Coast and the Gulf of Mexico, Talos is the energy company with the promise of growth in production according to the BusinessWire. The establishment is rated as such by its unique culture of collaboration between its own staffing in order to increase the modernization of the oil industry. They are a comparatively small company with a leading model of operations and this advance as a result of the Mexican oil reform gives them the deserving upper hand in production.