Talos Found It But Now Mexico Wants It: Report

September 30, 2019

There may be some delicate negotiations in the future for Houston’s Talos Energy‘s recent landmark find of nearly a billion barrels of oil off Mexico’s Southern Gulf Coast.

The find was a landmark because it was the first discovery by a non-Mexico-related oil company since that nation nationalized its petroleum industry 80 years ago.

But now Reuters eays state-run oil firm Pemex wants to take over the project, according to anonymous sources, as part of the drive by President Andres Lopez Obrador to regain state control of the energy sector after his predecessor started auctioning off oil fields in 2015.

Pemex has rights to an adjacent field and could claim the Talos-discovered field as well, though talks between Pemex and Talos are ongoing over a possible merged project and future talks are likely over which company will have operational control over the field.

This move by Pemex, though, could prove a big blow to Mexico’s biggest policy change in decades and chill any similar future investment from outside the country, Reuters noted.