LatinNews Daily - 13 August 2025

*Trinidad & Tobago’s Prime Minister Kamla Persad-Bissessar has announced that the government has signed a significant production sharing contract (PSC) with US oil company ExxonMobil for the Ultra Deepwater 1 block (UD-1), the amalgamation of seven former blocks, marking the company’s return to the country after two decades. Speaking at a press conference with an ExxonMobil vice president, John Ardill, Persad-Bissessar said that the mandatory first phase of the project will cost an estimated US$42.5m adding that, if successful, the projected development cost could be between US$16.4bn and US$21.7bn. In a post on his LinkedIn profile, Ardill said the block, which was exclusively assigned to ExxonMobil with a 100% working interest, is located northwest of the “renowned Stabroek block in neighbouring Guyana” and spans approximately 7,100km^2,. The Energy Chamber of Trinidad & Tobago (ECTT), the lobby group for energy and related sectors, has welcomed the announcement, saying in a statement that “the consolidation of blocks TTDA 17, 18, 19, 20, 21, 22, and 23 into one block (UD-1) creates a unique opportunity”. It notes that “deepwater and ultra-deepwater exploration are inherently more risky and more expensive than onshore or shallow-water projects. Consolidation of the blocks removes risk in both exploration and development of the block.” ECTT also said it was “excited to hear of Exxon’s intention to shoot 5,500 km² of 3D seismic in this block in the next six to twelve months and the commitment to drill two exploration wells.” The announcement is a boost for the government after the US revoked licences granted to British multinational oil firms Shell and BP, and Trinidad’s state-owned Natural Gas Company (NGC) in April for the development of two offshore natural gas projects between Trinidad & Tobago and Venezuela – Dragon (developed by Shell and NGC) and Cocuina-Manakin (a development by BP and NGC).

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