debut: 2/16/17
40,136 runs
Major Win, Measured Caution: T&T and ExxonMobil Seal TTUD‑1 Deal
Trinidad and Tobago’s new ultra-deepwater agreement with ExxonMobil has been hailed as a significant milestone in relations with the United States and a boost to cooperation in the energy sector. The US Embassy said the deal strengthens the bilateral partnership and showcases American energy expertise. ExxonMobil, the US-based energy major, is headquartered in Spring, Texas.
On Tuesday, a Production Sharing Contract (PSC) for the TTUD‑1 block was signed between ExxonMobil and T&T Deepwater Ltd at the Diplomatic Centre in Port of Spain. TTUD‑1 consolidates blocks TTDA 17–23. The eastern deepwater area exceeds 2,000 metres in depth and spans 7,165 square kilometres—larger than Trinidad and Tobago’s land area of 5,128 square kilometres.
Speaking at the signing ceremony, Prime Minister Kamla Persad-Bissessar estimated ExxonMobil would spend about US$42.5 million during the mandatory first phase. If exploration proves successful, total development costs could range from US$16.4 billion to US$21.7 billion.
Industry observers note Exxon first conducted seismic studies in these waters before exiting Trinidad more than two decades ago, when ultra‑deepwater drilling was not yet feasible. Since then, technology has advanced significantly, informed by decades of work in the Gulf of Mexico under tighter safety regimes. Coupled with the company’s recent success in Guyana and analogous sandstone targets identified off Trinidad’s east coast, ExxonMobil is signaling confidence in the geology—and the prospect of commercial oil and gas. Energy circles in Houston, Texas, are abuzz over the deal.
ExxonMobil’s vice-president of global exploration, John Ardill, said the company is returning to Trinidad and Tobago confident it can build on lessons from nearby Guyana. Still, economist Dr Indera Sagewan urged caution: exploration carries uncertainty until hydrocarbons are actually found. She added that while the contract is a major win, the country must keep diversifying into non‑energy sectors.
Precis of documents from US embassy and T&T newspapers
Trinidad and Tobago’s new ultra-deepwater agreement with ExxonMobil has been hailed as a significant milestone in relations with the United States and a boost to cooperation in the energy sector. The US Embassy said the deal strengthens the bilateral partnership and showcases American energy expertise. ExxonMobil, the US-based energy major, is headquartered in Spring, Texas.
On Tuesday, a Production Sharing Contract (PSC) for the TTUD‑1 block was signed between ExxonMobil and T&T Deepwater Ltd at the Diplomatic Centre in Port of Spain. TTUD‑1 consolidates blocks TTDA 17–23. The eastern deepwater area exceeds 2,000 metres in depth and spans 7,165 square kilometres—larger than Trinidad and Tobago’s land area of 5,128 square kilometres.
Speaking at the signing ceremony, Prime Minister Kamla Persad-Bissessar estimated ExxonMobil would spend about US$42.5 million during the mandatory first phase. If exploration proves successful, total development costs could range from US$16.4 billion to US$21.7 billion.
Industry observers note Exxon first conducted seismic studies in these waters before exiting Trinidad more than two decades ago, when ultra‑deepwater drilling was not yet feasible. Since then, technology has advanced significantly, informed by decades of work in the Gulf of Mexico under tighter safety regimes. Coupled with the company’s recent success in Guyana and analogous sandstone targets identified off Trinidad’s east coast, ExxonMobil is signaling confidence in the geology—and the prospect of commercial oil and gas. Energy circles in Houston, Texas, are abuzz over the deal.
ExxonMobil’s vice-president of global exploration, John Ardill, said the company is returning to Trinidad and Tobago confident it can build on lessons from nearby Guyana. Still, economist Dr Indera Sagewan urged caution: exploration carries uncertainty until hydrocarbons are actually found. She added that while the contract is a major win, the country must keep diversifying into non‑energy sectors.
Precis of documents from US embassy and T&T newspapers
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