ExxonMobil has sealed a historic production-sharing contract with the Government of Trinidad and Tobago, marking its return to the country’s offshore sector after more than two decades. The agreement was signed at the Diplomatic Centre in St. Ann’s by Prime Minister Kamla Persad-Bissessar and ExxonMobil’s Vice President of Global Exploration, John Ardill, in a ceremony that government officials called a “transformational moment” for the nation’s energy future.
The deal awards Exxon the Ultra Deep 1 (UD-1) block, an enormous tract covering roughly 7,165 km² — an area larger than the landmass of Trinidad and Tobago combined.
Located in water depths between 2,000 and 3,000 meters, UD-1 consolidates seven previously separate deepwater blocks into a single exploration zone.
Under the contract, ExxonMobil will invest US $42 million in the initial exploration phase, which includes 3D seismic surveys and up to two exploration wells. Survey operations are expected to commence within six months, with drilling to follow. If substantial reserves are confirmed, the total project investment could surge to US $21.7 billion.
Energy Minister Roodal Moonilal emphasized that the deal was designed to be globally competitive, with fiscal terms crafted to attract and retain major players. “Investment goes where it is welcomed,” Moonilal said, highlighting that the government has learned from regional examples of successful deepwater partnerships.
Potential Regional Impact
ExxonMobil is not entering untested waters. The company is applying the same high-tech exploration approach that led to over 11 billion barrels of recoverable resources in Guyana’s Stabroek Block — one of the world’s fastest-growing offshore developments. Executives have openly stated they aim to replicate that success in Trinidad.
