Trinidad and Tobago Government Agrees to Award ExxonMobil Deepwater Blocks

Trinidad and Tobago's government has agreed to award ExxonMobil acreage in an ultra-deep area off the east coast of the Caribbean country. The deal includes seven blocks renamed as Ultra Deep 1, with water depths of 2,000 to 3,000 meters. ExxonMobil and the government may sign the agreement as soon as next week. The area could unlock potential similar to ExxonMobil's Stabroek block in Guyana, where the consortium has confirmed over 11 billion barrels of recoverable resources.

Trinidad and Tobago's government has agreed to award U.S. oil major ExxonMobil acreage in an ultra-deep area off the east coast of the Caribbean country. The deal includes seven blocks renamed as Ultra Deep 1, with water depths of 2,000 to 3,000 meters. ExxonMobil and the government may sign the agreement as soon as next week [1].

The area to be awarded to ExxonMobil covers water depths of 2,000 to 3,000 meters, making it one of the deepest offshore areas in the region. The agreement includes a signing bonus and a three-phase exploration program that involves the acquisition of seismic data and drilling of exploration wells [1]. If oil or gas is found, the agreement also includes royalty payments and a share of the profits to the government, along with a provision for cost recovery [1].

The deal is part of Trinidad and Tobago's efforts to rejuvenate investment, particularly offshore, where more gas output is needed to support the nation's liquefied natural gas and petrochemical industries. However, the country is also hoping to find oil in its deep waters [1].

ExxonMobil first approached the Trinidadian government in November of 2024 with interest in the seven blocks. The company's interest in the area is likely driven by the potential for similar discoveries to those made in its prolific Stabroek block in Guyana, where the consortium has confirmed over 11 billion barrels of recoverable resources [1].

In Guyana, ExxonMobil and partners Chevron and CNOOC are about to begin production at their fourth floating facility, which will expand its capacity beyond 900,000 barrels per day (bpd), less than six years after beginning oil production in the South American country. The group plans to produce up to 1.7 million bpd by 2030 [1].

During a press briefing last week, ExxonMobil CEO Darren Woods said exploration is part of a three-pronged approach to ensure that the company continuously replaces the oil and gas it produces. "We're continuing to have a very consistent and focused effort on finding more resources that will be economically advantaged and competitive in our portfolio," Woods said [1].

Trinidad and Tobago is in the middle of a deepwater auction that has been extended to close on September 17, excluding the areas ExxonMobil is interested in. According to Trinidad's laws, the government can individually negotiate areas for exploration and production if they are not included in a competitive bidding round [1].

References:
[1] https://www.reuters.com/business/energy/trinidad-exxonmobil-agree-terms-deepwater-blocks-government-sources-say-2025-08-05/