According to Reuters the Government of Trinidad and Tobago has finalized terms with U.S. energy giant ExxonMobil for the award of seven ultra-deepwater exploration blocks off the country’s east coast, according to senior government sources cited by Reuters. The agreement, expected to be formally signed as early as next week, marks ExxonMobil’s return to Trinidadian waters after a 20-year absence.
The newly designated area, renamed Ultra Deep 1 (UD1), encompasses water depths ranging from 2,000 to 3,000 meters and is situated northwest of ExxonMobil’s prolific Stabroek block in Guyana, where the company and its consortium partners have discovered over 11 billion barrels of recoverable oil and gas resources.
A 2024 study by Houston-based energy analytics firm TGS suggests that Trinidad and Tobago’s ultra-deepwater reserves could hold potential comparable to the Stabroek block. ExxonMobil has committed to a structured three-phase exploration program, including seismic data acquisition and exploratory drilling. Should commercial discoveries be made, the agreement stipulates royalty payments, profit-sharing with the government, and provisions for cost recovery.
"We routinely evaluate opportunities to optimize our advantaged portfolio," an ExxonMobil spokesperson told Reuters, declining to comment on specifics.
The move aligns with ExxonMobil’s strategy to replenish reserves through targeted exploration. CEO Darren Woods emphasized this approach in a recent press briefing, stating, "We maintain a consistent focus on securing economically competitive resources to sustain our production portfolio."
The company’s recent successes in Guyana underscore its deepwater expertise. ExxonMobil and its partners, Chevron and CNOOC, are preparing to commence production at their fourth floating production facility in Guyana, boosting output beyond 900,000 barrels per day (bpd). The consortium aims to reach 1.7 million bpd by 2030.
According the Reuters, ExxonMobil initially expressed interest in the seven blocks in November 2024, prompting direct negotiations under Trinidadian law, which permits individual agreements for areas not included in competitive bidding rounds. The country’s ongoing deepwater auction, extended until September 17, remains open to additional participants.
This agreement represents a significant step in Trinidad and Tobago’s efforts to revitalize its energy sector amid declining hydrocarbon production. If successful, the ultra-deepwater exploration could position the country as a key player in the Atlantic Basin’s energy landscape.
Source: Reuters | Reporting by Curtis Williams
