Exxon Mobil has signed a landmark production-sharing contract with the government of Trinidad and Tobago, marking its return to the Caribbean nation after two decades. The agreement grants Exxon rights to explore a vast deepwater area — larger than the country’s own landmass — in the hopes of unlocking significant oil and gas reserves.
According to Energy Minister Roodal Moonilal, if exploration confirms commercial-scale reserves, Exxon could invest up to $21.7 billion in the project. The newly awarded area lies northwest of Guyana’s prolific Stabroek block, where Exxon has already confirmed more than 11 billion barrels of recoverable resources.
Strategic Location and Record-Speed Negotiations
The award was finalized in what Moonilal described as “record time,” with Exxon’s Vice President of Global Exploration, John Ardill, emphasizing the company’s plan to leverage its geological knowledge from the region to replicate its Guyana success.
Initial exploration will require an investment of $42 million for 3D seismic surveys and up to two exploratory wells. Exxon expects to begin drilling the first well about six months after completing seismic work. The company will operate the block with 100% ownership.
Potential for Rapid Development
While the project remains in the early stages of exploration, Ardill highlighted the “great potential” of this ultra-deepwater region. If significant reserves are confirmed, development could move faster than in Guyana thanks to Trinidad’s existing oil and gas infrastructure. Exxon also plans to share resources and equipment between its operations in Guyana and Trinidad to speed up the process.
Regional Deepwater Momentum
Trinidad has already seen notable progress in deepwater exploration through projects led by BHP, Woodside, BP, and Shell, with some discoveries advancing toward commercial production.
Prime Minister Kamla Persad reaffirmed the country’s commitment to creating a competitive investment environment for energy companies, stating:
“Investment goes where it is welcomed and stays where it is well treated.”
With Exxon’s return and the scale of the awarded acreage, this deal could represent one of the most significant steps forward for Trinidad’s energy sector in recent years.
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