Steve Otillar Quoted by Reuters on Potential Issues with Contract Rescission Clauses

Reuters, for its article “Tough Contract Rescission Clauses Could Blunt Mexican Oil Opening,” quoted Akin Gump oil and gas partner Steve Otillar on potential issues companies may have with the Mexican Energy Ministry’s administrative rescission clauses that were written into the initial 14 production-sharing contracts following the opening of Mexico’s oil markets.

The article notes that the clauses with the potential to overturn a contract include output loss and intentionally providing false information to the government, among others. Otillar said that, “For companies with a lower risk threshold, this will be a significant problem.”