Steve Otillar Quoted in Financial Times on Mexico’s Oil Auction

Steve Otillar, a partner in Akin Gump’s oil and gas practice, was quoted in the Financial Times article “Mexico: the big oil sell-off” regarding Mexico’s auction this week of 14 oil contracts.

The article notes that bidders must supply a parent company guarantee and provide a bank security to back up their work program, in addition to meeting certain financial requirements, in order to pre-qualify for the auction. Otillar is advising the National Hydrocarbons Commission, which is operating the auction.

Despite the stringent financial requirements, Otillar thinks the low price of oil will end up benefiting Mexico. He said, “At $110 a barrel, lots of warts get covered up. Mexico needs competitive terms. In the long run, the tough price environment will mean better fiscal and legal terms.” He added that with the stakes being so high, the Mexican government “will make this work. This is too big to fail for Mexico.”