T&T awards oil block to Exxon

Aug 13, 2025 News

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…company looking to replicate success in Guyana, Stabroek Block

Kaieteur News – American oil giant ExxonMobil Corporation on Tuesday signed an agreement with the Government of Trinidad and Tobago for the new TTUD-1 Block, which is a consolidation of seven oil blocks.

The block consists of Trinidad and Tobago Deep Atlantic Area (TTDA) 17, 18, 19, 20, 21, 22, and 23. The signing of the Production Sharing Contract (PSC) for TTUD-1 came after six months of negotiations between the twin-island state and the oil major. Exxon noted that the signing of the PSC was done in record pace.

Speaking at the signing ceremony, T&T’s Minister of Energy and Energy Industries, Roodal Moonilal, labeled the signing of the PSC as historic. He disclosed that the block is located in the eastern deepwater area of T&T in water depths greater than 2,000 meters and covers an area of 7,165 square kilometers.

“By way of reference the surface area of the islands of Trinidad and Tobago is 5,128 square kilometers what we are awarding today is larger than the surface area of the country,” the minister noted.

Minister Moonilal disclosed that in December 2024 the ministry received approval to engage with ExxonMobil for the award of a PSC. “Intense negotiations followed which resulted in the agreement on terms for the production sharing contract they were mutually beneficial to Trinidad and Tobago as well as ExxonMobil,” he said. The minister explained that while bid rounds are the preferred method of award, direct negotiations are allowed under the country’s Petroleum Act.

Moreover, the minister disclosed that Exxon has committed to undertake a minimum exploration work programme of 5,500 square kilometers of 3D seismic during the first phase of the exploration period. He added that the exploration of seismic survey is scheduled to commence within 12 months of the signing of the PSC.

Moonilal disclosed too that at a minimum, Exxon has agreed to the drilling of two exploration wells, with one of these wells in each of the optional second and third phases of the exploration period. He then listed Exxon’s financial obligations, which amount to US$12.8 million and include administrative charges, training contributions, technical assistance, bonuses, and scholarships.

For his part, Vice President of Global Exploration at ExxonMobil, John Ardill, noted that the PSC sets the foundation for a strong partnership with T&T and to explore and unlock resources.

Ardill said that while it is still frontier exploration, Exxon believed it has great potential. He underscored that ultra-deepwater areas are often very challenging but noted that Exxon is very excited and has the experience. The Exxon official added that while there is no guarantee for success, many of the largest deepwater discoveries in the world are happening in deepwater environments similar to what the oil company will embark on exploring offshore T&T.

Further, Ardill added that Exxon is ready to start 3D seismic activities within the next six months to collect data that will then identify the prospect for oil and gas and thereafter drill a well to test the potential.

Mirror success in Guyana

In his address, Minister Moonilal added that T&T’s ultra-deep marine area represents the country’s best prospect for the discovery of substantial hydrocarbon resources.

He outlined that Exxon’s renewed interest in the country’s oil and gas industry could be in part related to the company’s successful operation in the Stabroek Block offshore Guyana.

“Studies suggest a potential link between Trinidad and Tobago’s deepwater areas and the petroleum systems in offshore Guyana,” the minister noted. Notably, Exxon first began operations in T&T in 1998 but left in 2003 after its exploration efforts were unproductive.

Similarly, Exxon’s Vice President of Global Exploration Ardill noted that Exxon sees great potential to replicate its success in the Stabroek Block in T&T.

He noted that the company’s partnership with the Government of Guyana had allowed them to move from discovery in 2015, to first oil in 2019 and then four projects onstream to date producing 650,000 barrels per day (bpd).

“Throughout this experience ExxonMobil has really learned a lot about the Caribbean offshore geology and that’s what position us to move very quickly here in Trinidad and Tobago our plan and my commitment to you is to bring that experience to benefit you the people of Trinidad and Tobago and we see great potential to replicate the Guyana success here…” Ardill said.

He underscored that T&T is a very compelling location for oil and gas investment and noted that the country’s deep-rooted history in oil and gas should allow Exxon to move even faster than Guyana.

He also pointed to other benefits like the country’s robust infrastructure, mature dynamic industry, and deepwater port. To this end, he stated that these are all things that Exxon had to build in Guyana over the last 10 years.

“We are gonna bring ExxonMobil’s leading technology and capability directly from Guyana, we will leverage our presence, rigs, development concepts and pace and if you benchmark Guyana, it is by far the leading deepwater development in the world in terms of both scale and pace,” Ardill said.

The Stabroek Block spans 6.6 million acre and is estimated to hold 11.6 billion barrels of oil equivalent. Exxon struck oil in 2015 and by December 2019 commenced oil production. Just last week, ExxonMobil Guyana’s fourth Floating Production Storage and Offloading (FPSO) vessel, ONE GUYANA FPSO for the Yellowtail development, achieved first oil. With the addition of this fourth vessel, Exxon’s installed production capacity is now over 900,000 bpd – though production remains around 650,000 bpd – as the ONE GUYANA FPSO works to achieve its initial production target of 250,000 bpd.

Notably, last year the company recovered a production of 500 million barrels of oil. In addition to the Yellowtail project, Exxon has two other sanctioned projects under its belt: Uaru and Whiptail. It has also submitted an Environmental Impact Assessment (EIA) for its seventh project, Hammerhead, with production targeted for 2029. Additionally, the company has filed an application for an eighth development, Longtail.

By 2030, ExxonMobil Guyana expects to have total production capacity of 1.7 million oil equivalent barrels per day from eight developments.

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• Exploration, Exxon, oil, Stabroek Block, Trinidad

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