Prime Minister Kamla Persad-Bissessar and ExxonMobil Upstream Company VP of Global Exploration John Ardill, show copies of a signed production-sharing contract as Minister of Energy Dr Roodal Moonilal, left, and Minister in the Ministry of Energy Ernesto Kesar looks on. Photo: Angelo Marcelle

Persad-Bissessar made the statement at the signing ceremony for the award of a production-sharing contract for Block TT Ultra Deep 1 (TTUD-1) with ExxonMobil TT Deepwater Ltd at the Prime Minister's Residence and Diplomatic Centre, St Ann’s, on August 12, the 100th day of the new government.

She said some assessments indicate about one-third of the world’s undiscovered conventional oil and gas lies in deepwater basins. As a result, ExxonMobil will spend approximately US$42.5 million (TT$288 million) in the first phase of the project, and the projected development will cost between US$16.4 billion and US$21.7 billion.

She added that TT had a competitive advantage in hydrocarbons and the country would not surrender it lightly, so TT would continue to look for the resource, re-evaluate while keeping emissions as low as possible.

“TT will not wait for the end of any energy age. We will lead the next chapter by innovating, investing and expanding into new frontiers.

“Today’s signing underscores our government’s commitment to strengthening national energy security and to unlocking the full value of our hydrocarbon resources through discipline, policy, competitive terms and trusted partnerships.”

Ministry of Energy and Energy Industries Dr Roodal Moonilal said the signing was a result of successful direct negotiations, which the ministry got approval to engage in, in December 2024.

Seven blocks to the east of TT were merged to create the 7,165 square km TTUD-1, which was larger that the surface area of the country, 5,128 km.

“Although bid rounds are the preferred method of award, direct negotiations is allowed in the Petroleum Act and have been adopted by the Ministry of Energy as an additional approach in the effort to accelerate and optimise the exploration of our country's hydrocarbon resources.”

Persad-Bissessar said in the early 2000s the sector accounted for about 45 per cent of the country’s GDP, over 40 per cent of government revenue and about 80 per cent of foreign exchange earnings, but that declined significantly for various reasons over the past decade.

She said the government treated that downturn as a call to restore momentum, renew confidence and re-establish TT as the energy hub of the region.

It will be done by maintaining an attractive fiscal framework aligned to risk and reward, enhancing operational efficiency across exploration and production, reducing production costs by enabling technology and logistics, and streamlining regulatory oversight without compromising standards.

In addition, the government’s ease-of-doing-business programme in energy will remove administrative bottlenecks, modernise licensing and approvals, clarify legal frameworks, and improve transparency at every stage of the value chain.

“Today, we also send a clear message: TT’s energy sector is open for business. Investor confidence from global majors remains strong, as evidenced again by ExxonMobil's participation. After 22 years ExxonMobil has come back to TT. They probably know something that we are going to find out very soon.”

She also intended to continue exploration in deepwater, shallow water and onshore. So she mandated the Energy Ministry to accelerate the responsible exploration of unexplored land and marine acreages, continuously improve acreage-award processes, and undertake a comprehensive review of the oil and gas taxation regime to ensure TT remains internationally competitive in the hydrocarbon industry.

Block's development can bring US22b investment

Moonilal said TTUD-1 had a water depth over 2,000 metres.

“In the early years, the limits of technology meant wells could only be drilled in water depths of around 1,500 metres, whereas today's most capable assets can drill in water twice as deep.

"Many key advancements have made this possible, including everything from the design of drill ships and semi-submersibles to the innumerable cast of other high pressure high temperature technologies. The advancement in technology alone means that challenges presented by the country's ultra deepwater sector have largely been addressed.”

It was revealed that 3D seismic data acquisition would begin within 12 months of the signing date, and ExxonMobil agreed to drill two exploration wells, with one well in each of the optional second and third phases of the exploration period.

ExxonMobil also agreed to administrative charge, minimum payment, training contributions, research and development contributions, technical assistance, equipment bonus and scholarships.

The value of the financial obligations amount to US$12.8 or TT$87 million in phase one of the project, and successful development of the block could result in an investment of up to US$21.7 billion.

“Today is a vote of confidence in TT energy future by the largest publicly traded oil and gas company by market capitalisation.”

After the signing, the government closed off the deepwater bid round in which 26 deepwater blocks are on offer, with the deadline extended to September 17 from July, because of the high interest shown by organisations.

ExxonMobil VP: Company's experience can benefit TT

John Ardill, ExxonMobil's vice president of global exploration said ExxonMobil and the government had been working on the deal for the past six months, and negotiations moved at a record pace.

He believed the production-sharing contract set a foundation for a strong partnership to explore and unlock new resources, even as he stressed there were no guarantees of success. But, he said many of the largest discoveries and developments in the world were happening in similar deepwater environments.

He explained ExxonMobil shot 3D seismic data in Guyana in 2013, made the lease of discovery in 2015 and started producing oil in 2019. Now, production was about 650,000 barrels a day and it is commissioning a forth production vessel which would add another 250,000 barrels a day.

ExxonMobil is the leading energy company in Guyana and its work produced economic benefits for the country, including real economic growth, societal developments and jobs.

“Throughout this experience ExxonMobil has really learned a lot about the Caribbean offshore geology and that’s what’s positioned us to move very quickly here in TT.

“Our plan and my commitment to you is to bring that experience to benefit the people of TT, and we see great potential to replicate the Guyana success here.”

He added that TT’s long hydrocarbon history meant there was a wealth of expertise along the value chain which will allow the company to move even faster than it did in Guyana.

Young: Deal came out of a PNM 2024 initiative

In response to the signing of the deal former Energy Minister Stuart Young pointed out the PNM administration engaged ExxonMobil and started the negotiations for the ultra deepwater blocks.

“In fact, it was possible for us to have approved the production-sharing contract terms prior to the April 28 election but we decided not to rush it. So the current administration has done very little to nothing to complete this deal.

“Additionally, there needs to be seismic surveys done, studies of the results and many more technical studies completed before there can be any declaration of potential hydrocarbons.

"So to have the UNC government state that these blocks will improve TT’s hydrocarbon future in the manner that the Prime Minister has, is yet another blatant misrepresentation to the population.”

Young claimed Persad-Bissessar and Moonilal were trying to “hoodwink the population” as she did when she declared a major oil find in the 2010-2015 period.

Young said if there were hydrocarbons in the ultra deepwater blocks, it would take at least 15 to 20 years to come to market.

“So whilst I am happy that a production-sharing contract has been signed it has little to do with the UNC, and it certainly will not help us for another 15 years.”