Steven Otillar Quoted by Bloomberg News on Pemex’s Cash Woes
Steven Otillar, an oil and gas partner at Akin Gump, spoke with Bloomberg News about Petroleos Mexicanos (Pemex)’s possible plans to sell stakes in pipelines and oil terminals.
The article “Pemex, Badly in Need of Cash, Works on Plan to List Some Assets” notes that Pemex may try to take advantage of new rules in Mexico creating master limited partnerships that would allow the company to sell shares of individual assets to investors lured by attractive tax exemptions. With oil prices severely depressed, the article says it would be a source of much-needed cash.
“It’s not the cure-all for all woes, but it will provide a very nice vehicle for Pemex to drop assets into,” said Otillar, who has advised Mexican energy companies. “Pipelines and mid-stream assets would be ideal,” he added, noting that Pemex’s 18,500 miles of pipelines are among the most attractive opportunities.