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MP concerned about oil deal T&T signed with Exxon
…cites Guyana’s secretive lopsided PSA
Trinidad and Tobago (T&T) Opposition Member of Parliament, Colm Imbert
Kaieteur News – Trinidad and Tobago (T&T) opposition Member of Parliament, Colm Imbert on Monday expressed concern about the deal the T&T government has inked with American oil giant ExxonMobil for exploration in the country’s deepwater area, while calling for details of the agreement.
He was speaking on the Production Sharing Contract (PSC) which was signed last week for the new TTUD-1 Block; a consolidation of seven oil blocks.
At the opposition’s press conference, MP Imbert stated that there are a number of issues that have not been given proper attention. He questioned the procurement process used to award the block to Exxon and also enquired about the terms of agreement.
T&T’s Minister of Energy and Energy Industries, Roodal Moonilal, had disclosed during the signing ceremony that in December 2024, the ministry received approval to engage with ExxonMobil for the award of a PSC. He had noted too that while bid rounds are the preferred method of award, direct negotiations are allowed under the country’s Petroleum Act.
In his address, MP Imbert pointed to the Production Sharing Agreement (PSA) Exxon has with the Government of Guyana for the Stabroek block, which is estimated to hold 11.6 billion barrels of oil.
“It is reported [Exxon] got a very good arrangement with the government of Guyana for the first production of oil in Guyana where there was a royalty of just two percent the former Guyanese government was accused of selling out to ExxonMobil, because we in Trinidad and Tobago we charge a royalty of twelve and a half percent, not two percent,” Imbert stated.
The agreement governing the Stabroek Block extends favorable terms to the oil companies. According to the agreement, Stabroek Block partners can recover 75 per cent of oil produced to cover investment costs. The remaining 25 per cent is considered profit and is split equally between Guyana and the consortium, giving each 12.5 per cent. However, the consortium pays a 2 per cent royalty from its share to Guyana. From Guyana’s 14.5 per cent total take, the government must pay the oil companies’ taxes.
Moreover, in relation to Exxon agreement with T&T, Imbert said, “So there are a lot of questions that have not been answered about this matter. What are the agreed terms?”
Imbert said that the situation reminds him of 2012-2013 when then T&T’s Prime Minister Kamla Persad-Bissessar appeared at a press conference with two jars of oil and spoke about the bounty that was about to come to T&T from the Salado field. “We haven’t got one cent yet, 13 years later,” he noted.
The MP stressed that his concern is that the agreement that was signed with Exxon is for exploration in the deep-water region, and noted that he believes it would take a minimum of 10 years before the first barrel of oil is produced in that deep water area – if the project progresses that far.
He outlined too, that the arrangement that had catered for Exxon to recover all of its costs first, before any revenue goes to the government. The MP said, “While it’s a good thing that a major oil company has decided to invest in Trinidad and Tobago, you’re talking revenue a decade from now, which is really not relevant in the modern era.”
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