On August 13, 2025, ExxonMobil officially inked a landmark agreement to explore for oil and gas in the ultra-deep waters off Trinidad and Tobago’s east coast, marking the energy giant’s return to the Caribbean nation after more than two decades away. The deal, which covers a vast expanse exceeding 7,165 square kilometers—an area actually larger than Trinidad and Tobago’s own landmass—heralds a new chapter in the nation’s bid to secure its energy future while balancing growing global calls for greener energy.
The signing ceremony for the Production Sharing Contract (PSC) for Block TTDU1, held at the Diplomatic Centre in Port of Spain, was attended by government officials, energy executives, and local stakeholders. Prime Minister Kamla Persad-Bissessar hailed the agreement as “a milestone for our energy sector,” underscoring the significance of ExxonMobil’s renewed interest in Trinidad and Tobago. “They probably know something that we are going to find out very soon,” Persad-Bissessar remarked, hinting at the optimism surrounding the project’s potential.
According to the Associated Press, the exploration zone sits in waters more than 6,500 feet (2,000 meters) deep, making it one of the most ambitious offshore ventures in the region. The project will kick off with a geophysical survey within six months, as ExxonMobil seeks to gather critical data before commencing test drilling. The company’s vice president of global exploration, John Ardill, emphasized the high stakes and potential rewards, noting, “Many of the largest discoveries and developments in the world are occurring in deep-water environments similar to what you have here.”
The financial scope of the project is equally impressive. As reported by the Trinidad Express, Persad-Bissessar revealed that ExxonMobil could invest up to US$21.7 billion (TT$147 billion) over the coming years if significant hydrocarbon reserves are discovered. The mandatory first phase alone will see an estimated US$42.5 million spent, with total development costs potentially ranging between US$16.4 billion and US$21.7 billion should exploration prove fruitful. “Ultra-deepwater exploration has the potential to deliver very large volumes at high margins, easily offsetting the tremendous capital costs and technical challenges inherent in a project of this scale,” Persad-Bissessar explained.
Energy Minister Dr. Roodal Moonilal provided further details, noting that ExxonMobil has agreed to drill two exploration wells—one each in the optional second and third phases of the exploration period. The financial obligations for phase one include administrative charges, minimum payments, training contributions, research and development contributions, technical assistance, equipment bonuses, and scholarships, totaling US$12.8 million (TT$87 million). Moonilal highlighted the government’s efforts to streamline regulations and remove bureaucratic hurdles, stating, “We have bottlenecks in the regulatory framework, in the legal framework, so we have to look at ease of doing business and in energy that will include the following: remove administrative bottlenecks, modernise licensing and approvals, clarify legal frameworks and improve transparency at every stage of the value chain.”
The deal comes after a planned energy production partnership involving Trinidad and Tobago and neighboring Venezuela was halted due to the revocation of two Office of Foreign Assets Control licenses by the U.S. government. These licenses were essential because of ongoing U.S. sanctions against Venezuela’s energy industry, leaving Trinidad and Tobago seeking new avenues for energy development. ExxonMobil’s return, after exiting the country in 2003 following unsuccessful exploration efforts that began in 1998, is seen as a strong vote of confidence in the nation’s hydrocarbon potential and its investor-friendly policies.
Prime Minister Persad-Bissessar was candid about the delicate balancing act facing Trinidad and Tobago. On one hand, the nation must heed international pressure to reduce carbon emissions and transition to cleaner energy sources. On the other, she argued, the country cannot afford to “lightly surrender” its competitive advantage in hydrocarbons. “The Northern Hemisphere developed their countries to the fullest and are now trying to put on us that we should clamp down on our carbon emissions, (that) we should look not too much to hydrocarbons,” she said. “Trinidad and Tobago has a competitive advantage when it comes to hydrocarbons, when it comes to the energy sector, and we should not lightly surrender that.” Persad-Bissessar pledged that while emissions would be minimized wherever possible, the nation would continue to maximize the benefits of its natural resources.
Data acquisition under the PSC is expected to not only aid the current project but also enhance Trinidad and Tobago’s national subsurface database, deepening understanding of the country’s petroleum potential. Dr. Moonilal pointed out that the area’s geological features are analogous to prolific basins such as Guyana-Suriname, Ghana’s Tano Basin, and Nigeria’s ultra-deep waters. Citing petroleum geologist Dr. Krishna Persad, he estimated that Trinidad and Tobago’s undiscovered oil resources could total up to five billion barrels, with the ultra-deep marine area offering the greatest promise. “New 3D data acquisition and advanced imaging workflows, including full waveform inversion, will improve our understanding of these complex geologic structures. ExxonMobil is well equipped with the technology to meet this challenge,” Moonilal said.
Technological advances have played a pivotal role in making such ambitious projects viable. Over the past 25 years, drilling technology has doubled the feasible depth from around 1,500 meters to over 3,000 meters, opening up new frontiers for ultra-deepwater exploration. Ardill praised the record pace of negotiations and agreement finalization, stating, “We’ve got a record pace. We do this all over the world. Last week, I was in London, signed an agreement in Libya on Monday, and then signed in Azerbaijan on Thursday. We’ll head to Algeria tonight, and this is among the fastest paces of any of those examples.” He also commended Trinidad and Tobago for executing the largest oil and gas licensing round in its history concurrently.
The government’s approach, as outlined by Persad-Bissessar and Moonilal, focuses on creating a competitive and transparent environment for investment. “The principle is simple; investment goes where it is welcome, and investment stays where it is well treated,” Persad-Bissessar said, promising ongoing collaboration with industry stakeholders and international partners. She expressed confidence that the venture would deliver high-margin returns and long-term prosperity for the country, adding, “The path ahead is brighter and the domestic energy sector is in safe, steady, experienced hands.”
While environmental advocates and international observers will be watching closely to see how Trinidad and Tobago balances its energy ambitions with its climate commitments, the government’s message is clear: the nation intends to remain a major player in the global energy landscape, leveraging both its resources and strategic partnerships. As the geophysical surveys begin and the first drills prepare to break the ocean floor, all eyes will be on what ExxonMobil and Trinidad and Tobago can discover—and how those discoveries might shape the region’s future.
The agreement stands as a testament to the nation’s determination to secure its energy future, even as it navigates the complex realities of a world in transition.
