For 80 years, Mexico did not allow foreign investments to come into the country in their oil and gas industry. They allowed their nationalized company called Pemex to control all of these drilling experiments. However, that has not worked for the country in recent years. And in 2015, they changed plans. They wanted to offer investors a chance to boost their economy so they opened the gates.
Three companies won a bidding war that allowed them to own the oil rig, which is going to produce hundreds of millions of barrels of crude oil. The value is in the multimillions and the three companies understand how much is at stake. Premier Oil, Sierra Oil and Gas, and a Houston company named Talos Energy are the big three in the game.
Talos will take over operations. It gets about a third of the proceeds, Sierra gets half, and Premier will get about a quarter. This set up seems fair, say a lot of experts in the industry, due to their ability to give funds back to the tax payers. When it comes to innovative companies that should take over the project, there is none better than Talos, which has built a track record on that.
Talos Energy was born of a hedge fund investment company, a holding company to be precise, called Phoenix Holdings. It was responsible already for numerous wise investments that brought investors high returns in other markets. They saw the opportunity to do something special and went all in on the energy sector, investing $600 million. Now, their yearly revenue is almost as high as that figure after acquiring a few other companies in their journey.
The company is focused on drilling, exploring, producing, and using oil in the region around Mexico’s coast and the Gulf coast. With this in mind, they know how hard it is to compete in the oil and gas business, so management made sure to compensate workers correctly. Everyone at the company participates in the upside profit and therefore work morale is achieved. Additional perks of working at the company exist, like food amenities and personal facilities.