Mexico Opens Up Energy Market to Foreign Investment from Talos Energy and More

Nearly 80 years ago, Mexico’s government wanted to make the oil and gas industry nationalized. So they prevented any private companies from building oil wells or drilling in Mexico or its water since then. However, a new age is booming in Mexico and what Talos Energy knows.

A new oil rig project is being developed off the coast of Tabasco, led by three companies: Talos Energy, Premier Oil, and Sierra Oil and Gas. The companies are based in the U.S., England, and Mexico. It marks the first time since 1938 that any outside companies will be a part of drilling in Mexico.

The oil well is named Zama. Situated in the Sureste Basin off of Tabasco’s coast, it is shaping up to be a profitable well. It is estimated to hold up to 500 million barrels of crude. The scientists researching it predict a successful project based on the geology of the site and more information click here.

In order to earn the right to drill there, the three companies in question had to bid in a competitive battle in 2015. Now, the stakes are divvied up fairly evenly among the three in the oil takings. And it’s an adventure that the rest of the industry will surely be watching. Talos will receive 35% from the well, Premier will get 25%, and Sierra will receive 40%. Talos will be the company that primarily operates the rig day to day and Talos’s lacrosse camp.

Talos Energy is a unique oil and gas company operating out of Houston, Texas. It is private and was started with several hundred million dollars from previous backers. It recently acquired Helix Energy Solutions to the tune of around $600 million. The company focuses on opportunities to drill off the coast of Mexico and the U.S. and https://www.crunchbase.com/organization/talos-energy.

Now, it is enjoying yearly revenues of around $500 million and growing. Because of this, the staff have grown from a dozen to more than one hundred. The employee atmosphere is second to none thanks to the many perks. For example, employees share in profits from the company in terms of equity. Furthermore, happy hours on Fridays and built-in daycares make it a pleasant place to work and its Facebook.

Bradesco CEO Luiz Carlos Trabuco Has Mixed Results Amid One Great Victory

Bradesco has become Brazil’s largest banking concern across a number of crucial metrics. It has more money on deposit, more branches, more client funds under management and more active loans than any other bank in Brazil. In total assets, it’s just a hair behind its largest competitor, Itau Unibanco, at over $400 billion. However, Bradesco has not made great progress over the last 8 years, at least not measured by its stock price, which has roughly stagnated. However, Trabuco has accomplished one great feat at his time at the helm of Bradesco. He completed the 2015 acquisition of HSBC Brazil, a move that instantly rocketed Bradesco to the number one spot, by many measures, among Brazilian banking institutions.

A man and an organization rise in tandem

With Bradesco now occupying the top slot in many areas of Brazilian finance, it is worth remembering that the institution had the most humble beginnings. Founded in 1943, in the city of Marilia, Bradesco began life as a company with just a couple of branches. It slowly underwent growth over the next decade. By 1959, the year in which Luiz Carlos Trabuco began working at the firm, it had grown into a small, regional presence, with a few offices across the city of Marilia.

Trabuco’s incredible career was charted in almost perfect tandem with the rise of Bradesco itself to a position of prominence. In fact, Trabuco himself played a key role in the firm’s success, but that would not be for many years to come. Between the 1960s and 1980s, Trabuco slowly rose through the ranks. He was quickly spotted as someone with a aptitude for learning new positions as well as being a natural leader. By the late 1980s, he was heading a large department within the bank. Then, in 1992, he finally received his first chance at a genuine executive role.

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In that year, Trabuco was tapped to head up the firm’s small but growing financial planning division. As Brazil had become an economically dynamic country with many first-world characteristics, it had a growing population of middle and upper-class citizens with the need for long-term retirement and investment planning. Trabuco recognized the opportunity and quickly began implementing services and products that would have been competitive anywhere in the world but which were all but unheard of in Brazil at that time. Over the next 11 years, Trabuco grew the financial planning business from a relatively minor part of Bradesco’s business into a unit that accounted for more than 25 percent of the corporation’s annual profits. This stellar performance did not go unnoticed by higher-ups. In 2003, Trabuco was tapped to head the company’s large insurance division.

He had similarly good results as president of Bradesco Seguros. While heading the department, Trabuco grew revenues to over 30 percent of the total of the firm. In the process, the business line became the largest underwriter of retail insurance policies in the country. In 2009, when outgoing CEO Mario Cypriano was due to step down, Trabuco was the obvious choice for replacement.

But unlike his other executive roles, Trabuco found himself surrounding by an environment where no low-hanging fruit remained. The spectacular growth of the firm that was experienced under Cypriano’s leadership had largely sputtered out. Amid a stagnant Brazilian economy, organic growth seemed an unlikely source of ongoing, expanded profits. Trabuco knew that he needed to pursue acquisitions to realize significant growth, but there were none to be had.

Then, in 2015, HSBC began to put word out on the street that they were looking to dump their Brazilian operations. Trabuco pounced, quickly making an all-cash offer of $5.2 billion dollars. By late 2015, the deal had been closed, and Bradesco had been put back on top as the country’s most significant financial firm.

However, organic growth has been more elusive. Without organic growth, Bradesco will still be vulnerable to competition. Whether Trabuco will be able to find sources of organic growth will be something that only time can tell.

Find more about Luiz Carlos Trabuco: http://fotos.estadao.com.br/galerias/cultura,luiz-carlos-trabuco-cappi-e-lucilia-diniz-ofereceram-jantar-em-torno-do-prefeito-joao-doria-e-sua-mulher-bia-nos-jardins,30901