In the recent past, there has been increased competition in the drilling industry and low prices of oil that make it quite challenging for companies to improve their production capacity. Most people believe that there are adequate oil reserves that can lead to the production of billions of barrels. This is a belief that attracts thousands of contractors in the oil drilling industry. PEMEX, which mainly operates in Mexico has discovered oil reserves in the coast of the country near the Sureste Basin.The Zama-1 well is estimated to make a massive recovery of up to 400-800MMbbl oil volume and can extend up to the area operated by PEMEX. Due to such significant discoveries, there is need to derive best valuations and finding the most effective strategies for operating at PEMEX.
Numerous distinguished drilling companies are much interested in the project to ensure that it becomes a success. The companies have to partner as soon as possible before the drilling project starts in 2019 or by the end of this year.Talos Energy and Premier Oil are among the companies that are interested the drilling project. To increase efficiency in appraisal planning, other vendors have already submitted engineering designs. The partners of Premier Oil are currently studying the feasibility of the projects to find out which one should start. It is worth noting that Premier is interested in the coast of Brazil because it had made the best prospects in the area.A plan has already been prepared to start the drilling campaign which is set to begin before the year 2020.
Premier has established a strong partnership with Petronas near the Atlantic Ocean along the coast of Mauritania. Unfortunately, the production was shut down. As a result, a drill ship is set on a mission to suspend the oil production on a temporary basis. The production will be permanently suspended if the government approves the abandonment of the field.Based on the current economic conditions, companies need to be highly competitive. Exploration of offshore energy is quite competitive thus requiring firms to be quite aggressive. Timely delivery of findings and provision of accurate data about the value of oil reserves should also be given. This is among the reasons as to why companies should strive to offer the best results.