Mexican Tycoon Carlos Slim Eyes Expansion in Oil Sector, Including Talos Energy Projects
Mexican billionaire Carlos Slim is looking to increase his investments in the oil industry, with a particular focus on projects by U.S.-based Talos Energy. Slim recently acquired a stake in an offshore project discovered by Talos and now plans to expand his company’s presence in the oil and gas sector beyond oilfield services.
At a press conference, Slim expressed his interest in exploring opportunities in the oil and gas industry, including petrochemical projects. He emphasized that his investment in Talos’ Mexican subsidiary would depend on various factors, but confirmed his interest in investments in Talos Energy’s overall portfolio.
“It depends on the conditions,” Slim said regarding increasing his stake in Talos’ local unit. “But definitely. Investing in the parent company… interests us.”
Slim also highlighted the importance of partnering with experienced entities, stating, “We’re interested in being partners with someone with experience.” His business empire spans various sectors, including telecommunications, mining, and retail.
In 2017, Talos Energy discovered the Zama oil deposit in Mexico’s territorial waters in the Gulf of Mexico. However, the operating rights for the project were subsequently given to state oil company Pemex, which holds rights to an adjacent area where Zama likely extends. The Zama oil field is Talos Mexico’s primary project and is estimated to hold approximately 735 million barrels of oil.
Last year, Talos sold 49.9% of its subsidiary Talos Mexico to Grupo Carso in a $125 million transaction. Talos CEO Tim Duncan highlighted that 2024 would be a crucial year for the Zama asset, noting progress on engineering designs.
While Slim’s oil and gas business has traditionally focused on providing services, such as renting out drilling rigs and deepwater platforms, he now intends to expand into production and marketing. Currently, Slim holds about 22% of Talos Energy overall.
Pemex, with a 50.4% stake, is the operator and largest shareholder of the Zama oil field. Talos and Carso own 17.4%, Germany’s Wintershall Dea holds 19.8%, and Britain’s Harbour Energy has the remaining 12.4%.
Recently, Mexico’s oil regulator approved a request by Pemex to modify the development plan for Zama, including reducing the budget and postponing certain infrastructure projects. It is expected that the Zama field will eventually produce up to 190,000 barrels per day of medium crude and associated gas.
Analyst comment
Positive
Analyst: Carlos Slim’s interest in expanding investments in the oil sector, particularly in Talos Energy projects, is a positive development. It demonstrates confidence in the potential of the projects and could lead to increased growth and investment in the industry.
