Steven Otillar Quoted in The Wall Street Journal on Mexico’s Onshore Oil Field Auctions
The Wall Street Journal has quoted Akin Gump oil and gas partner Steven Otillar in the article “Mexico’s Pemex Finds Partners for Onshore Oil Fields.” The article reports that, while Pemex’s recent auction for two shallow-water oil fields in the Gulf of Mexico failed to receive any bids, it did secure partners to increase production at mature onshore oil fields.
The bids for the oil fields on land came from companies in Egypt and Germany. Both of them, according to the article, offered the maximum royalties to the Mexican government and additional cash payments to win 50 percent stakes in the projects.
Speaking about the onshore auction results, Otillar, who advises companies participating in the Mexican oil sector said, “It’s the first time they really opened the door to more of a development and production block—onshore licenses, we hadn’t seen that yet. I think this is groundbreaking for the onshore area in this round, as Trion was for the deep water.”
The Trion deep-water project was Pemex’s first farmout, awarded in December 2016 to Australian mining giant BHP Billiton, which took a 60 percent stake.