Bloomberg BNA Quotes Steve Otillar on Raising Mexico’s Energy Content Requirements
For its article “Mexican Lawmakers to Consider Raising Domestic Content Levels in Energy Sector,” Bloomberg BNA quoted Akin Gump energy partner Steve Otillar on Mexico’s proposal to raise the national content requirements from 25 to 35 percent for international energy projects.
According to the article, Mexico will have several years to reach the new proposed content requirement target. To that Otiller noted, “The timing is the key. What we see is the recognition that you can't just do it arbitrarily and all at once. It comes through that the government recognizes that, while local content is important and can be a valuable tool to develop certain sectors of the industry, it has to be structured in a way that international investment is not deterred.”
Otillar also noted that the proposed revisions will be market-friendly in order to attract international investments. “They are speaking very much to the international market, wanting to ensure open access to markets. They talk about transparency, accountability—all the things that private investors are concerned about.” He concluded by saying these proposed revisions show investors that their investments will be protected and the government is serious about enforcing the rule of law.