For years, Mexico has allowed Pemex, a local monopoly, to control all of their oil reserves. In 1938, almost 80 years ago, they put into law that only local firms could operate their natural resources. Originally, this was to protect the Mexican economy from outsiders taking advantage of it. However, even though this initially worked, it backfired because they weren’t able to attract big firms that could drill the amount of oil that they had. They realized this recently in 2015, when they started a bidding war for the rights to drill in one of their wells with the most potential.
Sitting off the coast of Tabasco is a well that holds anywhere from 100 million to 500 million barrels of oil. The estimates are that it could produce millions of dollars for those who are willing to risk the drilling and pumping of the crude oil lying within it. In 2015, three companies won this right. They are Premier Oil, Sierra Oil and Gas, and Talos Energy. They hail from London, Mexico, and Houston respectively. The Mexican company will receive 40%, the London one 25%, and the Houston based firm 35%. Talos will be the main operator of the well.
Talos Energy LLC is a Houston based oil company and gas company. They were founded with hundreds of millions of dollars in investment. This allowed them to grow their annual revenue to $500 million quickly, making them one of the fastest growing small businesses in the nation. They focus on drilling and producing oil off the coast of Texas and Mexico. They recently acquired a competitor called Helix Energy Solutions for around $600 million, increasing their capacity.
One of the most exciting parts of Talos is that they allow their employees to participate in the upside. They each get a cut of the profits from the company. Instead of casual Fridays and other traditional perks, employees there are known for working late hours and going the extra mile because they feel invested in the success of the company. That’s one of the many reasons that the company grew from 15 to 120 employees so quickly.
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Related: Business Midwife