ExxonMobil could invest $21.7bn in Trinidad and Tobago

For the first time in two decades, ExxonMobil has returned to Trinidad and Tobago, and could invest $21.7bn in a region close to the Stabroek block off Guyana, reports Reuters.

Exxon has been awarded exploration rights for oil and gas in a large deepwater area off the two-island Caribbean nation, said Energy Minister Roodal Moonilal speaking at a recent event in Port of Spain.

Reuters reported that Exxon has been awarded rights in a seven-block region located northwest of its prolific Stabroek block, where Exxon operates a joint ventureship also including CNOOC and Chevron.

Exxon hold 100% of the rights in its newly awarded area in Trinidad and Tobago, where it hopes to replicate its Stabroek success.

“What we are awarding today is larger than the surface area of the country,” said Moonilal.

Exxon’s vice president of global exploration, John Ardill, told the same event that Exxon and Trinidad’s government negotiated the deal in what he said was “record time.”

Reuters reported that the US oil supermajor’s initial exploration plan will require a $42mn investment for 3D seismic and as many as two exploration wells, said Trinidad and Tobago officials. The seismic tests will begin in six months’ time.

“While this is still frontier exploration, it has great potential in this ultra deepwater area,” said Ardill, reported Reuters.

BHP, Woodside, BP and Shell are already involved in Trinidad and Tobago, noted the news service. Some of the companies are closing in on commercial developments, said Moonilal.

Trinidad and Tobago already has oil and gas infrastructure, so development could move relatively quickly. Exxon said it will use equipment from Guyana.

The Caribbean nation is keen to attract oil and investment. Its own gas production has been ailing.

“Trinidad will not wait for the end of any energy era,” Trinidad prime minister Kamla Persad has said. “Our principle is simple: investment goes where it is welcomed and stays where it is well treated.”