ExxonMobil Awarded Ultra-Deepwater Blocks in Trinidad

The government of Trinidad and Tobago has finalized an agreement to award seven ultra-deepwater exploration blocks to ExxonMobil. According to government sources, the agreement is expected to be formally signed next week. The newly designated area, named Ultra Deep 1 (UD1), is in water depths of 2,000 to 3,000m and is located northwest of ExxonMobil’s Stabroek block in Guyana.

The agreement marks ExxonMobil’s return to Trinidadian waters after a 20-year absence. A 2024 study by TGS suggests that Trinidad and Tobago’s ultra-deepwater reserves could be comparable to the Stabroek block, where ExxonMobil and its partners have discovered more than 11 billion barrels of recoverable oil and gas resources.

ExxonMobil has committed to a three-phase exploration program, including seismic data acquisition and exploratory drilling. If commercial discoveries are made, the agreement includes royalty payments, profit-sharing with the government, and provisions for cost recovery. An ExxonMobil spokesperson stated the company "routinely evaluates opportunities to optimize our advantaged portfolio". The move aligns with ExxonMobil’s strategy to replenish reserves through targeted exploration.

ExxonMobil’s success in Guyana has been a focus of its deepwater strategy. The company and its partners, Chevron and CNOOC, are preparing to begin production at a fourth floating production facility in Guyana, which is expected to boost output beyond 900Mbp/d. The consortium aims to reach 1.7MMb/d by 2030.

ExxonMobil initially expressed interest in the seven blocks in November 2024, leading to direct negotiations permitted under Trinidadian law for areas not included in competitive bidding rounds. Trinidad and Tobago’s ongoing deepwater auction has been extended until September 17 to allow for additional participants. This agreement is a step in Trinidad and Tobago’s efforts to revitalize its energy sector.