Bloomberg Quotes Steve Otillar on Joint Ventures with Mexico’s Pemex
Akin Gump oil and gas partner Steve Otillar is quoted in the Bloomberg BNA article “Mexico Readies Joint Venture Offers As Exxon Mobil Signs MOU With Pemex.”
The article discusses a change in Mexican law that allows companies to form joint ventures with Pemex, Mexico’s national oil company, on several oil fields in its portfolio that it does not have the technical or financial capability to develop. The Mexican government says the joint venture fields are expected to raise more than $12 billion annually from 2015 to 2018.
As part of the joint venture structure, Pemex will be allowed to negotiate with and indicate the partners with whom it wishes to work, though a final decision will be made by Mexico’s oil and gas regulator. It’s part of a process designed to protect against possible collusion or corruption, while still giving both parties the chance for needed negotiations to ensure a successful partnership.
Otillar said several factors “go into being a good [joint venture] partner, beyond financial or technical resources. If these companies are going to be working together, it is important for them to have negotiations and see how the proposed structure would work.”