Trinidad and Tobago Awards Seven Exploration Blocks to ExxonMobil

The government of Trinidad and Tobago has finalized an agreement to award seven ultra-deep exploration blocks to ExxonMobil. This development marks a significant return for the U.S. oil giant, which exited the Caribbean nation in 2003 after an unsuccessful offshore exploration campaign. The agreement, confirmed by senior government officials to Reuters, signals a renewed focus on the region’s potential in the oil market.

These exploration blocks are situated off the eastern coast of Trinidad and Tobago, adjacent to the prolific Stabroek offshore block in Guyana. There, ExxonMobil leads a consortium that has successfully identified approximately 11 billion barrels of oil equivalents and currently produces over 660,000 barrels per day (bpd). The proximity to the Stabroek block has sparked interest in resuming exploration, as Trinidad and Tobago looks to capitalize on its geographical advantages.

Resurgence of Exploration Activities

Discussions between Trinidad and Tobago and ExxonMobil commenced earlier this year, aiming to re-establish the company’s presence in the nation. ExxonMobil’s return is particularly noteworthy given its long absence from the market. A 2024 study by TGS, a Houston-based energy data analytics firm, suggests that the ultra-deep exploration potential in Trinidad and Tobago may mirror the success seen in the Stabroek block.

Trinidad and Tobago is recognized as the largest oil and gas producer in the Caribbean and ranks 17th globally in production. The country’s oil and gas sector is projected to grow at a compound annual growth rate of 4.4% through 2030. Prominent companies involved in this growth include BP, Shell, and Spain’s Repsol, all of which are poised to benefit from the revitalization of the industry.

The success of Trinidad and Tobago’s neighbor, Guyana, further underscores the potential of the region. In less than a decade, Guyana has ascended to become the fifth-largest oil exporter in Latin America, with production levels increasing from 400,000 bpd to over 660,000 bpd recently. ExxonMobil has ambitious plans to ramp up output to 1.3 million bpd by 2030.

Strategic Partnerships and Future Prospects

ExxonMobil’s recent strategic moves in the region include securing a new partner for its operations in Guyana’s Stabroek block after a favorable outcome in the arbitration case against Chevron regarding the acquisition of Hess Corp. This development positions ExxonMobil to further enhance its footprint in the Caribbean, taking advantage of the synergies available from its successful operations in neighboring Guyana.

The renewed exploration initiatives in Trinidad and Tobago present an opportunity for both the government and ExxonMobil to unlock significant resources in the ultra-deep waters. As the Caribbean nation looks to bolster its oil and gas industry, the collaboration with ExxonMobil could lead to substantial economic benefits and an increase in production capacity.

In summary, the award of these exploration blocks not only marks a pivotal moment for ExxonMobil but also signifies a broader resurgence of activity in Trinidad and Tobago’s oil and gas sector. The potential for significant discoveries aligns with the ongoing growth of the industry and the region’s strategic importance in the global energy market.