2025, 08/13

Trinidad and Tobago Prime Minister and Exxon Mobil Vice-President John Ardill sign the Award of a Production Sharing Contract for Block TTUDI, witnessed by Minister of Energy Dr Roodal Moonilal and Minister Ernesto Kesar. The energy mega-major is projected to incur epic expenditure of US$42.5 million in the first phase of the project.

After all the gloom, the petrostate rejoices at the splendid news of climactic investments by the World Champion of Petroleum, fuelling optimism of a turnaround to unlock energy fortunes.

Prime Minister Kamla Persad-Bissessar says US energy titan ExxonMobil could invest between US$16.4 billion and US$21.7 billion on development costs in the ultra- deepwater blocks in territorial waters, 190 miles off Trinidad’s east coast, if initial seismic and other technical studies are successful.

On 11 August, she gave the ruling United National Congress party a preview of yesterday’s signing ceremony of the Production Sharing Contract between IOC ExxonMobil and the Government, which Cabinet members and a large contingent from the American super -producer attended at the Diplomatic Centre, St Ann’s.

In the Production Sharing Contract, ExxonMobil committed to shoot 3D seismic across the acreage of over 7,000 square kilometres and drill two exploration wells, to strike hydrocarbons.

The Prime Minister said, “The benefits arising from this project would be enormous, as deepwater exploration has the potential to deliver large volumes at high margins, more than off-setting the handicap of tying up a great deal of technical capital and challenges.

From a resource owners’ perspective, the potential revenue contribution would be substantial and likewise, the in-country spend would benefit the local economy.

What this means for you is very simple: in the coming months and years, more decent jobs from exploration to services, from Point Lisas to the south; more reliable fuel and power supporting lower costs for transport, businesses and households; stronger foreign exchange to stabilise prices and support all the essentials that we import.”

At the ceremony, ExxonMobil Upstream Company vice president of global exploration, John Ardill, said the company has learnt a great deal about regional offshore geology from its exploration experience in Guyana, where it started seismic surveys in 2013, discovered oil in 2015 and expects to be producing up to an average of 900,000 barrels of oil per day this year.

ExxonMobil’s top geologist warned, “I have a little disclaimer in being a geologist in charge of exploration at ExxonMobil. No guarantee of success but I would tell you many of the largest discoveries and developments in the world are occurring in deepwater environments, similar to what you have here and I think you have an excellent partner.”

Ardill described T&T as a very compelling location for oil and gas investments, adding

its “deep-rooted history in oil and gas brings a wealth of expertise and capabilities across the entire value chain that should allow us to move even faster than Guyana, the mature, dynamic industry, robust infrastructure, deepwater ports. These are all things we had to build over the last10 years in Guyana.”

He said the first thing he asks his team when they go into a new exploration province is what do the “rocks” ( the geology) look like.

“And so, we’re very excited to test the rocks. While this is still frontier, exploration has great potential in this ultra-deepwater area. It’s very challenging, as it is far from shore but we have the perfect experience to bring to this challenge and even more important than that is the relationship and the partnership. So we have a very supportive Government and investment environment.”

He also praised the Government’s negotiating team for the “record pace” in concluding the negotiations for the production sharing contracts. At the signing ceremony.

Minister of Energy Dr Roodal Moonilal cited the views of “the eminent geologist and petroleum industry expert, Dr Krishna Persad, that there are significant resources of oil and gas remaining to be found in the various geologic basins of T&T. Estimates of yet undiscovered oil are in the range of five billion barrels. The ultra-deepwater marine area offers the greatest prospect for such discovery.”

See Also :

• Trinidad Page 3  for forewarning of this
• Trinidad Page. Deepwater blocks MAP & Deadline extension date

 

 

 

 

 

T&T Economy reels as US tariffs soar to 15%

2025, 08/03

In a sweeping update to the US tariff schedule affecting 69 trading partners worldwide, US President Donald Trump set a 15 per cent tariff on imports from T&T under a new executive order titled  Further Modifying the Reciprocal Tariff Rates.   From 7 August tariffs on exports to the USA will rise to 15 per cent, sparking fears of reduced competitiveness, dwindling foreign exchange inflows and blows to manufacturing and energy sectors.

As the cabinet braces for a potential economic storm, an inter-ministerial committee comprising foreign affairs, energy, trade, finance, and planning will meet on 5 August to chart a response and way forward. As key industries of methanol, ammonia and perhaps urea confront uncertainty in the critical US market,

Prime Minister Kamla Persad-Bissessar ordered an urgent review, warning of serious consequences for the economy from the inflated levy – up from 10 per cent in April when the Energy Chamber reported that the US export market is very important to T&T, accounting for about 30 per cent of exports.

Over 95 per cent of exports to the USA comprise energy-related commodities: crude oil, LNG, methanol, ammonia, fertilisers (urea and UAN) and iron and steel. Crude oil, LNG and some fertiliser are exempt from the tariff.

The Foreign Affairs Ministry confirmed that a report was prepared on instructions from the Prime Minister. Government intends to implement a  “multi-pronged approach” , collaborating with affected stakeholders for a resolution, including COTED (Council for Trade and Economic Development) to determine steps in the short term. Long-term plans will be rolled out soon.

The Central Statistical Office (CSO) reported that in 2024, exports to the US amounted to $21.04 billion or US$3.1 billion.

President of the T&T Manufacturers_ Association (TTMA) Dale Parson feared a negative effect on business. The tariff adds another stumbling block to the competitiveness of local products, particularly manufactured goods exported to Houston, Miami, New York and North Carolina, since 39.4 per cent of all exports go to the US.

“This additional five per cent will have a terrible negative impact on all goods and services exported from Trinidad into the United States. .. diaspora depend on locally manufactured goods exported into the US and this will definitely reduce our local competitiveness , not only energy and chemical items but also locally manufactured goods,”

While a 15 per cent tariff was imposed on T&T and Guyana , 10 per cent tariffs remained on the rest of Caricom. Parson lamented,

“This is really unfortunate and unfair, and I hope the Government can reach out to the US foreign affairs to see if the additional five per cent can be reverted,”

The rise makes exports less competitive in the US market and limits the ability to earn foreign exchange from international trade, as exports are the main way to generate foreign exchange outside the energy sector.

Hefty tariffs stymie diversification, industry and exports, especially manufacturing. The Foreign Minister must negotiate with the US, as other countries did, for removal from this list is extremely vital to the ravaged economy, left in a dire state by the last regime.

Trade, Investment and Tourism Minister Satyakama (Kama) Maharaj reaffirmed that Government is managing the challenge.

Guyana and Venezuela also face a 15 per cent tariff.

 

Chevron victory means mending rift with Exxon over Hess

David Wethe and Mitchell Ferman, Bloomberg, July 18, 2025

As the dust settles from a bruising legal battle over the world’s marquee oil bonanza, the leaders of Exxon Mobil Corp. and Chevron Corp. face a new challenge: collaboration.

Chevron’s victory in an international arbitration dispute initiated by Exxon allowed the $53 billion takeover of Hess Corp. to proceed. The prize for Chevron CEO Mike Wirth is a highly coveted stake in a cache of premiere oil discoveries in Guyana.

The catch is that Exxon is the majority owner and operator of those oil fields, which means two of the world’s largest energy behemoths must mend any lingering rift and forge a new partnership. It’s unclear whether enough time has passed to clear any bad blood.

“We tried early on to resolve this and thought we were working together in good faith,” Wirth said in a Bloomberg Television interview on Friday. “And then abruptly we were notified that the other parties decided they wanted to decide through arbitration.”

Even so, Wirth extended an olive branch to Exxon CEO Darren Woods, whose demand for arbitration threatened to derail the biggest deal of Wirth’s career.

For its part, Exxon indicated acceptance of Wirth’s peace offering, pledging to “welcome Chevron to the venture.” The 30% stake in a tranche of Guyanese crude discoveries is the crown jewel of the Hess deal, the zenith of Wirth’s seven-year tenure as CEO so far.

“Partnership is one of our core values, and we pride ourselves on being a good partner around the world with many, many different companies,” Wirth said in a telephone interview. “We partner with Exxon on projects elsewhere in the world and have for many years, and I’m sure we will find a way to move forward.”

Exxon’s surprise March 2024 demand for arbitration to halt Chevron’s acquisition of Hess cast a long cloud over the suitor company and its share price, calling into question Wirth’s ability to amass sufficient undrilled oil reserves to bolster future production.

Any such doubts have evaporated. Now, the former foes must find a way to return to business as usual, which for international oil giants routinely involves multibillion-dollar partnerships to execute some of the riskiest ventures on the planet.

Exxon responds to Guyana arbitration ruling

July 18, 2025

ExxonMobil released a formal statement on Friday following a ruling by the International Chamber of Commerce (ICC) Tribunal related to its contractual dispute with Hess Corporation over interests in the Stabroek Block offshore Guyana.

STATEMENT:

“We disagree with the ICC panel’s interpretation but respect the arbitration and dispute resolution process. As we’ve said before, ExxonMobil and CNOOC are aligned that we had a duty to ensure contract terms are always adhered to and not set a bad precedent for ourselves and industry.

Given the significant value we’ve created in the development of the Guyana resource, we believed we had a clear duty to our investors to consider our preemption rights to protect the value we created through our innovation and hard work at a time when no one knew just how successful this venture would become.

We welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved.”

 

ALSO

N.B.

The Global Biodiversity Alliance Summit, on July 23-25, 2025 in Georgetown, Guyana

will establish an international market for biodiversity credits.

It also aims to establish quantifiable targets for biodiversity conservation. It will formally integrate biodiversity into climate negotiations and financing at future COP meetings

 

Exxon eyes energy deals with Trinidad and Tobago

23 July

Reuters reported indicated that IOC ExxonMobil is negotiating with Trinidad and Tobago to explore and produce hydrocarbons in up to seven deep-water blocks off its east coast but while TT was in a bid round, blocks that interested Exxon were not on offer. Reuters said if Exxon and TT reached an agreement, the IOC could acquire almost all the ultra-deepwater blocks that remained unlicensed.

Minister of Energy Dr Roodal Moonilal conceded they were engaging in talks.

“I can confirm that the Ministry of Energy and Energy Industries (MEEI) has ongoing talks with several of the leading global energy corporations with a view to repositioning Trinidad and Tobago as the energy hub of the Caribbean. We are in discussions with major players to ramp up exploration and production within and outside bid rounds.”

Dialogue between TT and major petroleum companies advanced in critical meetings at the Suriname Gas conference in June. ExxonMobil was not the only major oil and gas company to express interest in TT_s deep-water region.

“We have had favourable responses from several other leading oil and gas giants. Something is happening in Trinidad and Tobago _ a resurgence of investor confidence. We have taken on with renewed energy the mandate of Prime Minister Kamla Persad-Bissessar to escalate development in the energy sector to obtain much-needed revenue, foreign exchange and generate quality and well-paying jobs.”

TT is currently in the midst of a deep-water competitive bidding round, opened on January 27. The deadline for submission of bids was extended to September 17. Successful bids would be announced three months after the closing date.