Talos Energy Is Proud To Announce A Pre-Unitization Agreement With Pemex

In the Gulf and Coast of Mexico, are operations belonging to independent Talos Energy, an exploration and production oil company. Chief Executive Officer Tim Duncan leads exploring, acquiring, exploiting and developing the assets of shallow and deep waters near its infrastructure. He oversees the shallow waters on the coast to provide exploring opportunities in the basin which is emerging. In September 2018, PR Newswire announced the signing of a pre-unitization agreement or PUA between Pemex and Block Seven Consortium. Pemex is a large Mexican company focusing on industrial transformation, upstream production, downstream marketing, and logistics.

The two-year pre-unitization agreement is the first signed in Mexico enabling the sharing of Zama discovery information and possible expansion into the neighboring block of Pemex. The purpose of the contract is to establish a process based on global practices for participation of the parties in the event of confirmation of a shared reservoir. Its details include the formation of a working group comprising technical representatives and legal professionals. There are three main objectives of the PUA starting with efficient information and operation maximization. The other objectives include tract defining activities to optimize data collection and maximizing the benefits for Mexico by reducing hazards.

Talos Energy has a 35 percent interest in the Block Seven Consortium and Premier Oil owns 25 percent followed by Sierra Oil owning 40 percent. Premier Oil is an independently owned exploration and production company in Mexico, Brazil, Indonesia, Vietnam, United Kingdom, and the Falkland Islands. Sierra Oil and Gas is an independent company in Mexico. All three companies collectively operates the consortium in areas of the Southeast Basin in the offshore.

This is another milestone for Talos Energy after a $2.5 billion merger with Stone Energy Company. The completion of the transaction happened in May 2017 after Harvey damaged the home of Tim Duncan near Houston. His company has a yearly revenue of $900 million with most of its assets in the Gulf of Mexico. Its financial report reflected over $2 billion in assets and $700 million in debt. Duncan plans to increase the new company’s production which was 48,000 barrels of oil per day.

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