PORT OF SPAIN, Trinidad, CMC – The Energy Chamber of Trinidad and Tobago has welcomed the multi-million dollar agreement signed on Tuesday between the Trinidad and Tobago government and the US oil and energy giant, ExxonMobil, for the production sharing contract for Block Trinidad and Tobago Ultra Deep 1 (TTUD-1)
In a statement, the Energy Chamber said that the consolidation of blocks TTDA 17, 18, 19, 20, 21, 22, and 23 into one block (UD-1) creates a unique opportunity.
“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, as well as simplifies interaction with the Ministry of Energy and Energy Industries,” it added.
Vice President of Global Exploration at ExxonMobil Upstream Company, John Ardill, said Trinidad and Tobago could replicate the success of Guyana, which he said has “the fastest growing economy in the world today.
Ardill said Trinidad and Tobago is poised for accelerated growth, and that the oil company’s “deep-rooted history in oil and gas brings a wealth of expertise and capabilities across the entire value chain … should allow us to move even faster than Guyana”.
Prime Minister Kamla Persad Bissessar stated that Exxon Mobil is expected to incur US$42.5 million in expenditures during the project’s mandatory first phase. With success, the projected development cost could range between US$16.4 billion and US$21.7 billion.
“I reiterate that this agreement sets a strong precedent for the next phase of our energy future. While global headwinds may arise beyond our control, the path ahead is brighter,” she added.
The Energy Chamber said it is “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.
“We look forward to the consideration of non-traditional ways to engage the private sector and attract operators. The Chamber fully endorses the Prime Minister’s call for the creation of an attractive fiscal framework, the removal of administrative bottlenecks, the modernization of the licensing and approval process, and improving transparency in the process.”
It said that Ardill “spoke positively about the opportunity in Trinidad and Tobago, highlighting the attractive investment climate, robust infrastructure, deepwater ports, and supply chain.
These all point to Trinidad and Tobago’s competitiveness in oil and gas. The more projects that become viable in the energy sector, the more opportunities there will be for local content development and contractors,” the Energy Chamber added.
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