WSJ and Financial Times Quote Steven Otillar on Expectations for Mexico Deep Water Drilling Rights Auction

For its article “Mexican Oil Auction Offers First Major Test of Foreign Firms’ Interest,” The Wall Street Journal quoted Akin Gump oil and gas partner Steven Otillar on the auction to be held on December 5 by Mexico of drilling rights in the deep waters of the Gulf of Mexico.

The article notes that, although earlier inland and shallow-water auctions attracted some attention from major oil industry players, the largest companies primarily watched from the sidelines. This auction, by comparison, may see major private and state-owned firms participate.

Otillar said, “To have a household name operating in Mexico—that’s what they really need in order to consider this a success. It would be an enormous step.”

A separate article in the Financial Times notes that Mexico’s energy minister said success would be if four of the 10 fields at auction are awarded to bidders. Otillar said he sees the prospect of “virtually all if not all being tendered. There are some great opportunities there and it’s a 10-year window — most people see prices recovering . . . they could be $80 per barrel by then.”