Exxon Mobil (XOM, Financial), the largest oil producer in the United States, has initiated negotiations with the government of Trinidad and Tobago to explore oil and gas in up to seven deepwater blocks off the eastern coast of the Caribbean nation. This marks a potential return for Exxon Mobil to the region after exiting over two decades ago due to unsuccessful exploration projects.
The areas of interest for Exxon Mobil are situated north of the prolific Stabroek block in Guyana, where Exxon Mobil, along with its partners Hess and CNOOC, has discovered over 11 billion barrels of recoverable oil and gas. The company plans to increase daily production of light sweet crude to over 900,000 barrels later this year.
Trinidad and Tobago is keen to revitalize investment in its offshore sectors, particularly as it seeks to boost natural gas production to support its liquefied natural gas (LNG) and petrochemical industries. The country recently extended the deadline for its deepwater block auction to September 17, although the blocks under discussion with Exxon Mobil are not part of this auction.
If an agreement is reached, Exxon Mobil could secure nearly all remaining ultra-deepwater blocks not yet licensed, potentially expanding the company's influence in the region.
