Talos Energy to Operate Contracts in Mexico

U.S. company Talos Energy LLC, part of a group that won two contracts in an historic Mexican oil auction this week, will carry out production and exploration in the shallow water fields awarded, Mexico's oil and gas regulator said on Friday.

Houston-based Talos and its consortium partners, Mexico's Sierra Oil & Gas and Britain's Premier Oil, were the only winners in the disappointing first phase of the oil and gas tender.

Talos will conduct all the exploration and drilling because of its technical experience and capabilities, National Hydrocarbons Commission President Juan Carlos Zepeda said, and its partners will provide financing.

Mexico only received bids, or proposals that met its requirements, for two of 14 blocks in an auction meant to open up an energy sector that has long been dominated by state-run oil company Pemex.

(Reporting by Adriana Barrera)