Map of Project pipeline in August 2025

2025, 08/21

The Energy Chamber released a map of current upstream activity at the T&T Energy Conference in February 2025.

Some significant changes to this map, over the last six months reflect projects that achieved a final investment decision (FID) and moved into the full development stage, exploration projects that found commercial resources and are proceeding to a final investment decision and the most significant change, the return of energy standard-bearer, ExxonMobil, with an exploration block in the ultra- deep water Atlantic Basin.

The map categorizes projects into three main categories:

1. Exploration projects – which seek to establish the presence or quantity of the resource;

2. Projects working toward FID – with resources which can be exploited but await design work and commercial work to ensure that viability before a final investment decision can be made; and

3. Projects in execution – which achieved FID and are being implemented to produce the resource.

These are phases from the start to completion of the project. The time taken to move between these stages can vary considerably from three years to twenty years, depending complexity, water depths, proximity to infrastructure, licence negotiations and size.

Moving quickly is crucial for maintaining production as year-to-year petroleum output naturally declines. Having a robust pipeline of projects is critical, as production of both oil and gas has been falling over the last decade.

This update highlights projects that are successfully moving through the pipeline.

In the February map, the bpTT’s Cypre and the Mento projects ( an EOG joint venture with bpTT where EOG is the operator) were listed as a projects in execution. In Q2 both projects successfully delivered first gas.

In the execution phase, Shell Manatee is expected to begin production in 2027. The Shell Aphrodite (formerly Black Jack) received FID and moved into execution phase and expects first gas in 2027.

bpTT’s Frangipani and Beryl (EOG/BPTT JV) moved to projects working toward FID.

Major upstream projects advancing towards investment decisions, include Calypso (Woodside/bpTT), Onyx (Perenco) and Kanikonna (bpTT).

The major change to the map is the report of the signing of a production sharing contract (PSC) with ExxonMobil for the newly established UD-1 Block in ultra deepwater, now a project in the exploration phase.   Exxon will conduct a substantial seismic survey of an area of approximately 5,500 square km – exceeding the area of Trinidad and Tobago. Two exploration wells may be drilled.

Another addition was in November 2024, when two sites were established to conduct Wind Resource Assessments (WRAP). In July 2025, that two additional sites would be added, so four sites are being measured to assess the potential for wind energy. The two new WRAP sites have been added to the map. These projects were placed in the exploration phase, , currently gathering data to quantify the wind resources which will determine if wind projects are feasible . Interim data show positive results to support the development of a wind farm.

In July 2025,first electrons were produced from the Brechin Castle Solar Project – a joint venture among, bpTT, Shell and The National Gas Company of Trinidad and Tobago Limited.

The map includes the NewGen hydrogen project and the National Energy hydrogen project. These promise to provide green hydrogen for the downstream petrochemical sector, critical to reducing the carbon intensity of the ammonia sector. These are still in development and seeking to confirm FID.

It is important to continue to look at projects and where they are in the process. Projects should move through the process like a conveyor belt, to ensure that they are quickly moving through the different phases but allowing more potential projects to be added, become viable and begin producing – oil, gas, hydrogen, renewable energy and more.

The Energy Chamber annually hosts the Upstream Forum where major operators present their workplans for the near to medium term. The operators share their demand for services to support their activity plans. Interested companies can visit www.energy.tt to learn more.

 

 

US Embassy: ExxonMobil deal a “significant milestone”

Aug 14, 2025

“I am happy to welcome US energy giant ExxonMobil back to Trinidad and Tobago and congratulate them on being awarded an exploration contract for seven ultra-deepwater blocks off (the T&T) east coast. This is a significant milestone in the US/TT relationship as we strengthen our partnership in the energy sector and showcase American excellence to make both our countries more prosperous,” Neidhart de Ortiz said, according to a post by the US Embassy.

On Tuesday, a Production Sharing Contract (PSC) for the new TTUD 1 block was signed between ExxonMobil and T&T Deepwater Ltd at the Diplomatic Centre in Port of Spain.

TTUD1 block is a consolidation of blocks TTDA 17, 18, 19, 20, 21, 22, and 23. At the signing ceremony, Prime Minister Kamla Persad-Bissessar estimated ExxonMobil would spend about US$42.5 million during the mandatory first phase of the project, with total development costs potentially ranging between US$16.4 billion and US$21.7 billion if exploration proves successful.

Energy Minister Dr Roodal Moonilal explained that the eastern deepwater area, over 2,000 metres in depth spans 7,165 square kilometres, exceeding Trinidad and Tobago’s land area of 5,128 square kilometres.

ExxonMobil’s vice-president of global exploration John Ardill said the energy major had returned to Trinidad and Tobago more than two decades after its last venture, confident it could replicate its success in nearby Guyana.

US-based explorer ExxonMobil is headquartered in Spring, Texas.

 

 

Vast Trinidad deepwater frontier block awarded to ExxonMobil

August 14, 2025, by Dragana Nikše

U.S.-headquartered energy titan ExxonMobil signed a production sharing contract (PSC) with the Government for a deepwater block offshore Trinidad, in a dramatic Second Coming, to replenish the fortunes of the regional energy hub.

ExxonMobil’s Vice President John Ardill reported the extensive T&T Ultra Deepwater 1 (UD-1) block, exclusively assigned to ExxonMobil with a 100% working interest, spans approximately 7,100 square kilometers. UD-1 represents seven consolidated blocks TTDA 17, 18, 19, 20, 21, 22 and 23. part of the open acreage in February’s Deep Water Competitive Bidding Round 2025 which offered 26 blocks.

Ardill declared, “We are tremendously excited about the prospects this collaboration brings and look forward to utilizing ExxonMobil’s industry-leading capabilities to unlock the potential of this expansive region for the benefit of the people of Trinidad and Tobago,”

ExxonMobil Exploration & Production Trinidad Limited had signed a PSC with Trinidad and Tobago in February 1998, followed by drilling two wells in blocks 25(b) and 26 in 2002. ExxonMobil’s VP believes this strategic acquisition opens up new opportunities for his company to leverage its deepwater technology and subsurface expertise in exploring a vast frontier block located northwest of the Stabroek block in neighboring Guyana.

Yellowtail, ExxonMobil’s fourth project in Stabroek, started producing oil last week through the floating production storage and offloading (FPSO) unit, One Guyana. Encompassing six drill centers and up to 26 production and 25 injection wells, the project is the largest Guyana development to date, with an initial annual average production of 250,000 barrels of oil per day (bopd).

 

 

ExxonMobil Secures Vast Deepwater Block in Trinidad & Tobago

August 18, 2025 by Zacks Equity Research

Exxon Mobil Corporation strengthened its regional presence with a major deepwater acquisition in Trinidad and Tobago, securing a production sharing contract (PSC) for a frontier block that surpasses the islands in size.

XOM Gains Full Control of UD-1 Block

ExxonMobil signed the PSC with the Government for the Ultra Deepwater 1 (UD-1) block, which spans about 7,100 square kilometers — exceeding the area of 5,131 square km (1,981 sq miles) of both islands. The block, awarded exclusively to ExxonMobil with a 100% working interest, consolidates seven separate blocks (TTDA 17 through 23) offered during the February 2025 Deep Water Competitive Bidding Round.

John Ardill, ExxonMobil’s vice president, described the deal as a milestone for the company’s regional strategy, emphasizing that it strengthens XOM’s ability to deploy its industry expertise to tap the potential of the expansive acreage in Trinidad and Tobago.

XOM’s Deepwater Expansion
The award marks ExxonMobil’s Second Coming to Trinidad, where it last signed a PSC in 1998 before drilling two wells in blocks 25(b) and 26 in 2002. This new venture underscores the titan’s intent to leverage its advanced deepwater drilling technology and subsurface expertise in an unexplored frontier positioned northwest of Guyana’s prolific Stabroek block.

ExxonMobil has been leading oil development in Guyana, where production continues to scale rapidly. Last week, the Yellowtail project — the fourth development in Stabroek — began producing oil through the One Guyana floating production storage and offloading (FPSO) unit. Featuring six drill centers and up to 26 production and 25 injection wells, Yellowtail is expected to yield an initial average of 250,000 barrels of oil per day, the largest oil project in Guyana to date.

XOM Strengthens Regional Energy Position
With the UD-1 acquisition, ExxonMobil reinforced its deepwater presence across the region, positioning itself to unlock new reserves while extending its influence in the Western Hemisphere. The deal not only diversifies Trinidad’s energy portfolio but also aligns with ExxonMobil’s long-term strategy of tapping large-scale offshore opportunities.

 

 

Trinidad Awards Seven Ultra-Deep Blocks to ExxonMobil

August 5, 2025, Michael Kern – Oilprice.com

ExxonMobil and Trinidad and Tobago agreed terms under which the new government will award seven ultra-deep exploration blocks to the U.S. supermajor, officials told Reuters. The blocks are located east of Trinidad and northwest of Guyana’s Stabroek offshore block, where Exxon is leading a consortium that found 11 billion barrels of oil equivalents, produces over 660,000 barrels per day (bpd) and is exploring for more resources. Earlier this year, Trinidad and Tobago and Exxon launched talks on obtaining oil and gas exploration blocks in what would be a return to the country for the U.S. supermajor after a 22-year hiatus.

Now the major discoveries offshore Guyana and Trinidad’s east coast proximity to the Stabroek block prompted Exxon to return to exploration offshore Trinidad and Tobago which Exxon quit in 2003 following an unsuccessful offshore exploration campaign.

Reuters quoted a 2024 study by Houston-based energy data analytics firm TGS saying. “Ultra-deep Trinidad and Tobago could unlock potential similar to ExxonMobil’s Stabroek block.”

A leading oil and gas producer in the region, the island petrostate ranks 17th in the world. Its petroleum industry is growing at a compound annual rate of 4.4% over the decade to 2030, led by European champions BP, Shell, Perenco, Repsol and Proman, EOG of USA, Touchstone of Canada, Woodside of Australia and SGC NGC, SOC Heritage, Trinity and newcomer Renaissance.

Neighboring Guyana became the fifth-largest oil exporter in Latin America in less than a decade. Output grew from 400,000 bpd to over 660,000 bpd and Exxon plans to lift output to 1.3 million bpd by 2030. A new partner joined Stabroek consortium after Chevron won the arbitration case against Exxon concerning its acquisition of Hess Corp. Exxon expansion in the region marks a natural development from success in Guyana.

 

 

 

On Second Coming ExxonMobil Strikes Deal for Trinidad Ultra-Deep

Energy News August 6, 2025

Trinidad and Tobago agreed to award US behemoth ExxonMobil ultra-deep acreage that includes seven blocks to explore for hydrocarbons, officials told Reuters. The parties began negotiations earlier this year for the areas off the east coast of petroliferous Trinidad, which ExxonMobil left 22 years ago. The blocks are located northwest of ExxonMobil’s prolific Stabroek block in Guyana, where the consortium it leads confirmed over 11 billion barrels of recoverable resources. The Trinidad acreage of Ultra Deep 1 or UD1 in water depths of 2,000 to 3,000 meters, is an amalgamation of seven blocks.

ExxonMobil agreed to a signing bonus and a three-phase exploration program includes acquisition of seismic data and drilling of exploration wells. If they strike oil or gas, the agreement also includes royalty payments and a share of profits to the government, with a provision for cost recovery.

ExxonMobil first approached the last government in November 2024 with interest in the seven blocks. Trinidad and Tobago is in the middle of a deep water auction that was extended to close on September 17 and excludes the areas in which ExxonMobil is interested.

According to local laws, the government can individually negotiate areas for exploration and production if they are excluded in a competitive bidding round. Trinidad is desperate to rejuvenate investment, especially offshore, where more gas output will support the liquefied natural gas and petrochemical industries but it also hopes to find oil in deep waters.

A flagship offshore gas project with neighboring Venezuela, expected to relieve ongoing gas shortages, recently lost its U.S. authorization to proceed and has been shelved.

Ultra-deep Trinidad and Tobago could unlock potential similar to Stabroek block, according to a 2024 study by Houston-based energy data analytics firm TGS. ExxonMobil told Reuters,

“We will not comment on third party sources, but we routinely look at opportunities to optimize our advantaged portfolio.”

In Guyana, ExxonMobil and partners Chevron and CNOOC are about to begin production at their fourth floating facility, which will expand its capacity beyond 900,000 barrels per day (bpd), less than six years after beginning oil production in the South American petrostate. The group plans to produce up to 1.7 million bpd by 2030.

ExxonMobil CEO Darren Woods told media exploration is part of a three-pronged approach to ensure that the company continuously replaces the oil and gas it produces.

“We’re continuing to have a very consistent and focused effort on finding more resources that will be economically advantaged and competitive in our portfolio.”

A logical acquisition of CNOOC stake would therefore easily boost Exxon’s majority share of Stabroek and consolidate its regional base as the world pivots to energy security.

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US icon to explore ultra-deep blocks offshore Trinidad

August 6, 2025

ExxonMobil first expressed interest in the Trinidad blocks in November 2024 and this Second Coming is significant after it left in 2003, more than two decades ago.Trinidad and Tobago agreed to grant ExxonMobil exploration rights to an ultra-deep Atlantic region encompassing seven blocks, according to a Reuters report, citing officials.

ExxonMobil’s return to the petroliferous island is a big boost for the legacy producer and follows an earlier report that discussions were ongoing for exploration rights to the blocks. Now referred to as Ultra Deep 1 (UD1), the blocks, located north-west of ExxonMobil’s highly successful Stabroek block in Guyana, are situated in waters ranging from 2,000–3,000m deep.

ExxonMobil said, “We will not comment on third party sources, but we routinely look at opportunities to optimise our advantaged portfolio.”

The agreement includes a signing bonus and a 3-phase exploration programme of seismic data acquisition and drilling of exploration wells. Should exploration yield hydrocarbons, the Government stands to benefit from royalty payments and profit sharing with provision for cost recovery, reaping rewards for a successful strategy.

The petrostate, currently hosting a deep-water auction due to close on 17 September, has the right to negotiate individually for areas not included in competitive bidding, as per its laws. With the brilliant talent and legendary perspicacity of Exxon, Trinidad and Tobago aims to rejuvenate offshore investment, crucial for sustaining its liquefied natural gas and petrochemical industries. The energy epicentre hopes for oil in its deep waters, after a key offshore gas project with Venezuela was shelved due to the loss of US authorisation.

In neighbouring Guyana, ExxonMobil and consortium partners Chevron and CNOOC, is near the start of production at a fourth floating facility. This expansion will increase output to over 900,000 barrels per day with a target of 1.7 million barrels per day by 2030.

 

 

 

ExxonMobil puts USD21.7 billion on the table at Second Coming to Trinidad

PORT OF SPAIN, August 13, 2025

ExxonMobil could invest up to USD 21.7 billion in Trinidad and Tobago following the award of a major deepwater exploration area, Reuters reported on Tuesday.

The awarded acreage, exceeding 7000 square kilometers located northwest of Guyana’s prolific Stabroek block, is larger than the landmass of the southernmost island in the Caribbean Sea, covering an area of 4,768 km2 (1,841 sq mi),and of the combined area of 5,131 km2 (1,981 sq mi) of Trinidad and Tobago.

The mega-block, named Ultra Deep 1 or UD (1), in water depths ranging between 2,000-3,000 metres, includes seven deepwater blocks.The production-sharing contract marks ExxonMobil’s return to the legacy oil and gas producer after a 20-year absence. Initial exploration will require USD 42 million for 3D-seismic acquisition and up to two exploration wells, with drilling expected to begin in six months following survey completion.

“This is still frontier exploration, [but] it has great potential in this ultra deepwater area,” ExxonMobil vice-president of global exploration John Ardill said.

The petroleum colossus holds a 100% interest in the block and aims to replicate its exploration success in Guyana, where its consortium confirmed over 11 billion barrels of recoverable hydrocarbons. Existing oil and gas infrastructure in Trinidad could accelerate project timelines.

Ardill said ExxonMobil plans to use shared equipment and resources between its operations in Guyana and Trinidad and Tobago. ExxonMobil agreed to a signing bonus of $12 million and a 3-phase exploration programme with seismic studies and drilling. Terms for cost recovery, royalty payments and profit sharing with the government have been finalised.

In February 2025, Trinidad and Tobago launched a bid round for 26 deepwater exploration blocks, including Block 24 and Block 26, with 24 blocks in the Trinidad and Tobago Deep Atlantic Area, excluding the blocks that ExxonMobil was interested to obtain when it approached the authorities in November 2024.

ExxonMobil exited Trinidad and Tobago in 2003 after shallow-water exploration yielded limited results. Its return under a new ultra deepwater framework follows years of Guyana success and improved understanding of regional geology. The company’s primary operations in the petroliferous region are currently offshore Guyana, where it has developed multiple deepwater discoveries through FPSO units. The Trinidad award significantly expands its regional deepwater footprint.

Aiming to boost offshore production to support its LNG and petrochemicals sectors amid gas shortages and shelved cross-border projects, the new Trinidad administration, led by prime minister Kamla Persad-Bissessar, intends to enhance production and explore new fields to stabilise and eventually increase oil and gas revenues. The Prime Minister pledged that Trinidad and Tobago will revise fiscal terms to attract further investment.

“Trinidad will not wait for the end of any energy era. Our principle is simple: investment goes where it is welcomed and stays where it is well treated.”

 

 

 

World Champion on Second Coming plans epic exploration programme in Trinidad

Vladimir AfanasievEuropean Correspondent 13 August 2025

US juggernaut seeks a major discovery and quick development to replicate Guyana bonanza

International supermajor ExxonMobil is returning to Trinidad & Tobago following an award of an offshore deepwater mega-block, agreeing to bankroll a new exploration effort after exiting the oil pioneer in 2003 following an unsuccessful exploration programme.

ExxonMobil signed a production sharing agreement for the US company to start collecting 3D seismic data on the licence block and then proceed with drilling two exploration wells.

The parties negotiated terms of the PSA in “record time”, ExxonMobil’s Vice President of global exploration John Ardill said at the signing ceremony. He revealed that the company wants to use its knowledge of regional geology and replicate the success in Guyana where it discovered. 46 major offshore fields.

“While this is still frontier exploration, it [Trinidad] has great potential in this ultra deepwater area.”

ExxonMobil plans to use its available equipment and resources between Guyana and Trinidad & Tobago to expedite exploration.

Associated Press (AP) reported that during the signing ceremony, Ardill cautioned there are “no guarantees of success but many of the largest discoveries and developments in the world are occurring in deep-water environments similar to what you have here.”

The initial exploration plan off Trinidad’s east coast, in a block spanning over 7000 square kilometers at depths exceeding 2000 metres, requires investment of US$42 million. The first well could be drilled after completing seismic surveys due to start in six months, Ardill said.

“What we are awarding today is larger than the surface area of the country,” Trinidad & Tobago Energy Minister Roodal Moonilal said. The licence acreage is located northwest of ExxonMobil’s prolific Stabroek block offshore Guyana.

At the signing ceremony, the new Prime Minister Kamla Persad-Bissessar hinted that Trinidad & Tobago may review fiscal terms to facilitate investment for its energy sector.

“Trinidad will not wait for the end of any energy era. Our principle is simple – investment goes where it is welcomed and stays where it is well treated.”

However, necessary oversight and measures will be in place to ensure that safety and environmental standards are upheld.

(Copyright)

 

 

 

 

Energy Chamber rejoices over world-class ExxonMobil deal

August 12, 2025
by Energy Chamber

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 and simplifies interaction with the Ministry of Energy and Energy Industries.

The Chamber is excited by 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.

The Chamber applauds the Ministry of Energy for the successful award of the PSC and the pace at which it was completed. We look forward to 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 and for the modernization of the licensing and approval process and improving transparency in the process.

John Ardill, Vice President of Global Exploration, ExxonMobil, 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 T&T’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 for contractors.

Experts agree that success will deliver significant economic benefit to Trinidad and Tobago. Exxon’s interest in the ultra-deep is stimulated by their spectacular success in Guyana. Even if hydrocarbons are discovered, it will take three to five years before the first gas or oil is produced .

They hailed ExxonMobil’s return but voiced concerns over fiscal terms . Widespread Cretaceous shales forming San Fernando Hill are the main source rocks for petroleum in the region and occur onshore and in the Gulf of Paria. Hydrocarbons migrate to more porous and permeable Cretaceous reservoirs that are prolific in Guyana and Suriname and on geological trend with Trinidad..

While the Petroleum Act permits direct negotiations, these cannot be used for blocks currently in an active bid round. Direct talks may be justified if a company brings unique technology or interpretation that could open a new play. Trinidad and Tobago may gain more from competitive bidding than from one-on-one negotiations. However, the record of Exxon’s solid perseverance is unsurpassed and its investment adds another fine feather in the cap of the government, after its classic election victory on April 28.

Economist Dr Indera Sagewan said the contract with ExxonMobil was a major win for Trinidad and Tobago but warned of the urgent need to diversify the economy. She endorsed the deal, an “extremely important development for Trinidad and Tobago’s energy sector.

“I think it’s a major win for the new Government…It solidifies a sense of hope and a sense that things are happening and that more things can happen for the economy of Trinidad and Tobago. Let us be real: we continue to be an energy-based economy.”

Sagewan said the offshore exploration agreement marked a significant step in revitalising the fossil fuel industry, particularly the oil sector:.

“… gas (is) obviously more important than oil but this particular project promises a potential revival of the oil aspect of our industry. And that cannot be minimised in terms of its importance. We must recognise, though, that this is exploration, with the hope that oil and gas will be found. So, until that happens, it is simply hoping that it will translate into product being brought to market.”

Investors are unlikely to sanction such large sums without “a very, very strong sense, supported by the science, that there is potentially oil and gas where they are drilling”.

A seasoned corps of geoscientists and engineers, academics at UWI, UTT, NESC and professional societies GSTT and SPE maintain the century-old industry.

Stakeholders are relieved and delighted that the new government finished the job of signing the PSC contract. The Energy Ministry and the cabinet deserve credit for securing superior, experienced investors to create wealth from natural resources and restore energy security following the demise of the Dragon gas project. Despite the long-term nature of any potential returns, the agreement bolsters investor confidence. Renewed focus on fossil fuels can fund renewables and diversification into non-energy areas.

The deal differed significantly from the collapsed Dragon Gas project, because it does not require an OFAC licence from the USA to proceed and cost Trinidad & Tobago hefty annual payments of USD 1 million to Venezuela, presumably non-refundable.

 

 

 

Energy ace ExxonMobil tipped for deepwater Atlantic acreage

2025, 08/06

Negotiation by exemplary explorer ExxonMobil for the award of seven ultra-deepwater exploration blocks off the east coast of Trinidad and Tobago is a done deal, according to international news agency Reuters. The 100-day old government finalised terms which mark the Second Coming of energy operator ExxonMobil to Trinidad after an absence of two decades.

“The newly designated area, renamed Ultra Deep 1 (UD1), encompasses water depths ranging from 2,000 to 3,000 meters and is situated northwest of ExxonMobil’s prolific Stabroek block in Guyana, where the company and its consortium partners have discovered over 11 billion barrels of recoverable oil and gas resources.”

A 2024 study by Houston-based energy analytics firm TGS cited a view that Trinidad and Tobago ultra-deepwater reserves could hold potential comparable to the Stabroek block.

“ExxonMobil has committed to a structured three-phase exploration programme, including seismic data acquisition and exploratory drilling. Should commercial discoveries be made, the agreement stipulates royalty payments, profit-sharing with the government, and provisions for cost recovery.”

Energy Minister Dr Roodal Moonilal said, “We are engaged with several oil majors on exploration and production.”

The Petroleum Act states, “The President may determine that the grant of licences respecting any public petroleum rights, or the entry into production sharing contracts within the meaning of section 6, shall be subject to a procedure of competitive bidding in accordance with the regulations.”

Former energy minister Stuart Young on July 22, posted “The discussions and negotiations for the ultra deepwater blocks began under the PNM administration. The production sharing contracts’ terms were negotiated prior to April 28, 2025.”

However, the signing of the contract by the parties is the legal action confirming the deal which the last regime failed to secure during a pre-poll State of Emergency.

ExxonMobil initially expressed interest in the seven blocks in November 2024, prompting direct negotiations under Trinidad law, which permits individual agreements for areas excluded in competitive bidding rounds. The ongoing deepwater auction, extended until September 17, remains open to additional participants. This agreement represents a significant step in government efforts to revitalise the energy sector amid declining hydrocarbon production. Success in ultra-deepwater exploration could position the petrostate as a key player in the energy landscape of the petroliferous Atlantic Basin.

Reuters stated the deal aligns with ExxonMobil’s strategy to replenish reserves through targeted exploration.

CEO Darren Woods emphasised this approach, stating, “We maintain a consistent focus on securing economically competitive resources to sustain our production portfolio.”

The deal could hasten the acquisition of CNOOC stake in Stabroek by Exxon to consolidate its majority share as the world pivots to energy security.

Recent successes in Guyana underscore deepwater expertise of ExxonMobil as its consortium with Chevron and CNOOC prepares to commence production at their fourth floating production facility, boosting output beyond 900,000 barrels per day (bpd). The consortium aims to reach 1.7 million bpd by 2030.

 

 

 

Heavyweight ExxonMobil wins Trinidad UDW block

Trinidad and Tobago Government plans to award world-class ExxonMobil up to seven deepwater blocks. Reuters reported the blocks located off the east coast of Trinidad lie northwest of Exxon’s Starbroek block in Guyana in water depths of 2,000 to 3,000 metres.

The deadline for an ongoing deepwater bid round, which opened on January 27, expected to close on July 2, was extended to September 17.

The government has the right to individually negotiate areas for exploration and production excluded in a competitive bid round.

They deserve full credit for the pragmatic signing of the agreement, celebrating ExxonMobil’s Second Coming after a 22-year absence.

 

 

 

 

Paragon Exxon signs deal to explore Trinidad deepwater

August. 13, 2025 By Carl Surran, SA News Editor

Exxon Mobil said Tuesday it signed a deal to explore a vast deepwater area offshore Trinidad and Tobago for oil and gas, and the country’s energy minister said the company could spend as much as $21.7B if it finds sufficient reserves. The search will take place off Trinidad’s east coast in a region that spans more than 2,700 sq miles and is more than 6,500 ft deep, according to government officials.

Exxon’s VP of global exploration John Ardill told an audience in Trinidad,
There are “no guarantees of success but many of the largest discoveries and developments in the world are occurring in deepwater environments similar” to offshore Trinidad. “We see great potential to replicate the Guyana success here.”

Exxon (XOM) will start a geophysical survey in the next six months to collect data needed to identify prospects for oil and gas, then will begin drilling for testing, Ardill said. The company plans to use its equipment and resources between Guyana and Trinidad and Tobago to expedite exploration, Ardill also said. Exxon (XOM) is the operator of the block and holds 100% interest.

Trinidad and Tobago Summary

Government Focus:
Trinidad and Tobago is actively seeking to boost offshore gas production to support its LNG and petrochemical industries. This deal signifies ExxonMobil’s re-engagement with Trinidad and Tobago after a 22-year absence, according to Ocean Energy Resources.

Premier IOC ExxonMobil again proves its characteristic positive attitude, reflecting the country’s larger economic trajectory. ExxonMobil immediately gained exploration rights to a massive block it pinpointed in the ultra-deepwater Atlantic Ocean, potentially worth up to $21.7 billion.

Encompassing seven blocks, it is located north-west of ExxonMobil’s Stabroek block in Guyana and exceeds Trinidad and Tobago’s total landmass area.

The contract marks ExxonMobil’s Second Coming after a two-decade hiatus.
The Award: Trinidad and Tobago government awarded ExxonMobil exploration rights to an ultra-deep water area, officially named Ultra Deep 1 (UD1), which is equivalent to seven blocks in the Eastern Tobago Atlantic Basin, in water depths exceeding 2,000 meters, and north-west of ExxonMobil’s Stabroek block in Guyana.

Investment: Potential investment by ExxonMobil could reach $21.7 billion, contingent on the successful discovery of reserves.

Exploration Plan and Contract
The initial phase will involve 3D seismic mapping and up to two exploration wells. The agreement includes pre-production commitments including administrative fees, training, research contributions, technical assistance and equipment bonuses.

 

 

BP

RYTIS DAUKANTAS/UPSTREAM 8 August 2025

Second quarter results offered early hints that the UK supermajor’s strategy reset may be bearing fruit – investors will want more before they’re convinced.

While still early days, BP’s second quarter results hint that the supermajor’s strategy reset may be starting to bear fruit. Late in the UK summer is an unusual time of year for green shoots to emerge, yet hints of such a phenomenon surfaced in London’s St James’ Square. Rather than poking through the soils of the leafy quadrangle, however, the metaphorical signs of life were instead sprouting across the road at the headquarters of BP. The British supermajor’s second quarter earnings this week triggered another relatively rare phenomenon: an air of cautious optimism.

 

 

 

 

Renaissance finds commercial hydrocarbons in Barrackpore

19 August

In 1911, the British Trinidad Central Oilfields Ltd explored for oil to supply the Royal Navy. Drilling by South Naparima Oilfields Ltd, based on mapping of the Penal-Barrackpore anticline, established oil production from the Pliocene Forest sandstone. United British Oilfields built a refinery in 1912 and merged with Shell in 1913.

Barrackpore Oilfield lies on the Siparia syncline where oil and gas were discovered in the giant Forest Reserve field in 1914. The mature field. part of the foundation for the island’s oil industry and its economic transformation, is still delivering energy to the petrostate.

RENAISSANCE Energy Ltd announced that all three wells in its maiden drilling campaign in the Wilson Sands formation encountered commercial hydrocarbons, a major milestone for the emerging upstream company. The inaugural drilling campaign confirmed the high prospectivity of the Barrackpore Wilson Sands assets.

There was a 100% success rate, with all three wells finding commercial hydrocarbon volumes, validating subsurface models and informing the next drilling campaign. There were no safety incidents due to rigorous HSSE protocols. The drilling campaign was cost-efficient as the project delivered below budget through optimised logistics and technology deployment

“We’ve built tremendous momentum with this campaign. Beyond the technical success, we’re investing in the human capital that will drive sustainable natural resource management for decades.”.

The Energy Chamber said that, complementing Renaissance Energy operational achievements, it had launched its Energy Future initiative to inspire youth:

“Partnering with both private and public sector stakeholders, REL aims to develop curricula focused on exposing the next generation of professionals to the various possibilities in the energy sector. Human capital development is at the core of REL’s ESG ethos and commitment to investing in Trinidad and Tobago’s future.”

 

 

 

Investment in energy

August 10, 2025

As the United National Congress completed 100 days in government,  Energy Minister Dr Roodal Moonilal sent a message of optimism and assurance to the energy workforce and the wider public-

“The policies of Mrs Kamla Persad-Bissessar’s Government will resuscitate and revive the energy sector , create thousands of well-paying jobs and secure the future of the country.”

The administration is touting a wave of early achievements in the energy sector, ranging from increased production levels to renewed investor interest and progress on renewable energy initiatives in its 100 days since the general election.

Moonilal said the Government inherited a sector in serious decline on April 28, with low investor confidence and falling production numbers. He credited the Government’s swift action and clear policy direction for early momentum.

“Our main achievements thus far have been a clear articulation of our policies to resuscitate oil and natural gas production; the establishment of the Refinery Committee, to examine restart of the Pointe-a-Pierre refinery and our discussions with the oil and gas companies, which has resulted in some quick wins for production. We have got Shell to revisit the planned Manatee production levels with the view of delivering more natural gas from Manatee PLUS.”

Renewed arrangement with Shell to raise gas output will boost efforts to reassert regional leadership in energy through Caricom partnerships.

“We have expressed renewed interest in pursuing partnership arrangements with Caricom neighbours with the view of working with them and making this country the energy hub of the region. Pursuant to this mandate from the Prime Minister, we have given, for the first time, support to our State energy companies to widen their investment portfolios across the region. Indeed, we need a bigger footprint on the energy landscape .”

In “correcting the mistake of the century,” the Cabinet reversed a flawed Production Sharing Contract recommendation made in January 2025.

“I had to take a note to Cabinet to correct an ‘error’ by (former energy minister Stuart) Young, who recommended that Cabinet agree to a PSC that had an error whereby the State would lose approximately $7 billion. It took our new government to return to the Cabinet in July 2025 to retrieve that $7 billion. So, without extracting one barrel of oil or a molecule of gas, we gave the country $7 billion.”

Providing metrics to support accomplishments, Moonilal reported a “stabilisation of natural gas production and a 10% increase in oil production.”

The Refinery Committee began work and Guaracara Refining is involved in assessing the viability of restarting the Pointe-a-Pierre refinery. His address to the Society of Petroleum Engineers formally outlined policy direction.

“Investor confidence has surged since April 28. Many energy sector investors are happy with the new breath of fresh air flowing through the country. There is significant interest in our deep-water acreage – as the world has recently found. The oil and gas giants are looking to T&T as a favoured investment location.”

Since the UNC assumed office, , “we have increased oil production from 48,000 bopd which we met…today by almost 5,000 barrels more”.

Natural gas production had increased as well.

“We received the good news from Mr David Campbell (BP president) and BP that they have also seen growth in their production in the second quarter of 2025.”

Shell indicated “that they intend to ramp up and expand production and enhance production in the Manatee field by ten percent.”

This augured well for TT’s revenue position, addressing foreign exchange challenges and boosting investor confidence in the energy sector.

Companies operating in the Point Lisas Industrial Estate responded positively to the Government’s “open door” approach.

“The petrochemical companies are eager to invest and expand. This will drive a more aggressive export orientation and create much-needed, well-paying and high-quality jobs.”

Heritage Petroleum is central to the oil production strategy.

“Heritage Petroleum has to be the main pillar of revitalising oil production and our policy states clearly that they must play that role in conjunction with the Lease Operators and Farmout Operators. We have told the lease operators that we will look at expanding their acreage to ensure more drilling. As I mandated them: ‘Keep it pumping!’

For long-term sustainability, he pointed to progress in renewables.

“We are placing emphasis on sustainability through solar, wind and hydrogen. We have commissioned the first major solar farm in the country in Brechin Castle, efforts are underway to assess wind resource potential and National Energy is making progress in hydrogen.”

These efforts are part of a broader decarbonisation strategy: “We are pursuing renewables as a replacement for natural gas-derived electricity. This frees natural gas for export and for processing into petrochemicals.”

With increasing global regulatory pressure, such as Europe’s Carbon Border Adjustment Mechanism , the government is alert.

“We are aware of changes in Europe like CBAM and we know our petrochemical industry has to consider these changes.”

Declining to provide full details on upstream and downstream negotiations, Moonilal acknowledged ongoing talks with major international energy companies, particularly in deep water.

“I am excited by the renewed investor interest since April 28. The NGC (National Gas Company of T&T Ltd) board, which was recently constituted, will also be in negotiations with its Point Lisas customers for new contracts, some of which expire this year.”

The Government remains focused on lifting oil and gas production, attracting investment and improving ease of doing business.

“Our goal is to create the right climate for investment to flow into drilling. We plan to make it easier to do business in the energy sector which has been bogged down by red tape for too long.”

Addressing concerns about transparency, Moonilal highlighted existing mechanisms that promote accountability in the sector.

“Trinidad and Tobago is a proud member of the prestigious EITI (Extractive Industries Transparency Initiative). We became members under Mrs Persad-Bissessar’s first administration in 2015. We have procurement legislation. These are important mechanisms to guarantee transparency in the energy sector. There is parliamentary oversight of the sector via the Joint Select Committees and the state companies will subject themselves to scrutiny.”

Challenges his ministry inherited include production declines, plant closures and a non-functioning refinery.

“The biggest challenge was inheriting an energy sector in decline, as typified by production levels of oil and gas that fell by 35% and 34% respectively since 2015; the closure of plants that once employed thousands and a closed refiner.”

 

 

 

 

 

Touchstone Exploration Q2 2025 results

14 August 2025

Touchstone Exploration reports financial and operating results for the 3 and 6 months ended June 30, 2025.

Second Quarter 2025 Highlights

• • Strategic Acquisition: Completed acquisition of Shell Trinidad Central Block Limited, adding approximately 1,910 boe/d of liquids-rich natural gas production and providing access to global LNG pricing.
  • Production: Averaged 4,399 boe/d in the second quarter of 2025 (69 percent natural gas), compared to 4,317 boe/d (72 percent natural gas) in the first quarter of 2025 and 5,432 boe/d (77 percent natural gas) in the second quarter of 2024. Second quarter 2025 volumes include approximately 1.5 months of production from the Central block acquisition, which contributed approximately 1,910 boe/d over the post-acquisition period.
  • Petroleum and Natural Gas Sales: Totaled $11.01 million, a 22 percent decrease from $14.1 million recorded in the comparative prior year quarter.
  • Crude oil sales: $6.08 million from average production of 1,142 bbls/d at an average realized price of $58.52 per barrel.   $0.68 million from average production volumes of 210 bbls/d at an average realized price of $35.40 per barrel.
  • Natural gas sales: $4.25 million from average production of 18.3 MMcf/d (3,047 boe/d) at an average realized price of $2.55 per Mcf.
  • Operating Netback: Generated $5.04 million in operating netback, a 38 percent decrease from the second quarter of 2024, primarily due to decreased petroleum and natural gas sales and related royalties and increased natural gas related operating expenses.
  • Funds Flow from Operations: Declined to $1.43 million from $3.97 million in the prior year equivalent quarter, largely driven by lower operating netbacks and increased cash finance expenses, partially offset by lower current income tax.
  • Net Loss: Recorded a net loss of $0.71 million ($0.00 per share) compared to net earnings of $3.34 million ($0.01 per share) in the second quarter of 2024. The variance was primarily driven by the decrease in year-over-year funds flow from operations and a $1.5 million gain on asset disposition recorded in the prior year.
  • Capital Investments: Invested $4.66 million, primarily directed toward the drilling of the Cascadura-5 development well.
  • Private Placement: Raised net proceeds of $5.22 million in the quarter from the issuance of 24,636,585 common shares at 20.5 pence sterling (approximately C$0.38) per share.
  • Financial Position: Net debt increased to $63.89 million at June 30, 2025, reflecting the close of the Central block acquisition which was funded by an additional $30 million term loan facility.

Post Period-end Highlights

• • Convertible Debenture Offering: On August 13, 2025, the Company closed a $12.5 million private placement of convertible debentures and common share purchase warrants (the “Offering”) with a Canadian private investor. Net proceeds will fund the remaining 2025 Cascadura development drilling program and reduce outstanding accounts payable. The Company has received written confirmation from its lender that the Offering proceeds satisfy an equivalent portion of the equity raise requirement under its Fourth Amended and Restated Loan Agreement (the “Loan Agreement”).
  • Production Update: July 2025 field-estimated production averaged 5,281 boe/d, up 3.8 percent from 5,088 boe/d in June. Estimated volumes included 22.3 MMcf/d of net natural gas production (3,717 boe/d) and 1,564 bbls/d of net crude oil and liquids production.

The Company remains focused on capital discipline and maximizing value from its core development and exploration assets. The near-term strategy prioritizes enhancing operating cash flows through disciplined development drilling and the execution of targeted projects.

The Company now plans to fund its 2025 capital program primarily through proceeds from the May private placement and the $12.5 million Offering, supplemented by an additional equity financing of approximately $7.3 million, expected to close before the end of 2025, to satisfy obligations under the Loan Agreement. This approach replaces the original plan to fund the program through expanded credit facilities, which were utilized to finance the Acquisition.

The preliminary 2025 capital program contemplated four Cascadura development wells at Cascadura. The updated program replaces two of these wells with one development well on the Central block and two development wells at the WD-8 property. In addition, approximately $2.6 million in capital expenditures are expected in the second half of 2025 for a Cascadura facility compression project, scheduled for completion in the second quarter of 2026.

As a result of the Acquisition and the deferral of the initial Cascadura wells, the midpoint of the 2025 production forecast has been reduced by approximately 20 percent, and expected funds flow from operations has decreased by 50 percent. Forecast year-end net debt is expected to increase by 113 percent, primarily reflecting the $30 million term loan facility used to finance the Acquisition and proceeds from the Offering to support development activities.

Touchstone Exploration

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (596/2014/EU) (“MAR”) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 AS AMENDED (“UK MAR”). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, SUCH INFORMATION WILL NO LONGER CONSTITUTE INSIDE INFORMATION.

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT ITSELF CONSTITUTE AN OFFER TO SELL OR ISSUE, OR A SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE ANY SECURITIES IN THE COMPANY.

US$12.5M CONVERTIBLE DEBENTURE ISSUANCE

CALGARY, ALBERTA (August 13, 2025)

Touchstone Exploration Inc. (the “Company” or “Touchstone”) announces that it has closed a private placement of a secured convertible debenture and warrants (the “Offering”), with Canadian private investor and existing shareholder, JJR Wood Holdings Inc. (the “Holder”), for gross proceeds of US$12,500,000. The Offering reflects the Company’s ongoing commitment to advancing its strategic development initiatives.

Paul R. Baay, President and Chief Executive Officer, commented:

“This financing will provide the capital necessary to immediately restart drilling operations at Cascadura and subsequently bring new production online at the Cascadura facility. We are pleased to have secured continued support from both an existing shareholder and our Trinidad-based lender, reflecting confidence in our strategic direction and the quality of our asset base. This confidence is further demonstrated by the debenture’s principal conversion price, set at the US dollar equivalent of C$0.30 per common share, representing a significant premium to the current share price.”

Offering Terms

• • · Offering Size: US$12,500,000 through the issuance of a secured convertible debenture with an aggregate principal amount of US$12,500,000 (the “Debenture”).
  • · Interest Payments (Coupon) and Securities Offered: The interest rate on the Debenture is 5 percent and the Company also issued 6,250,000 warrants (the “Warrants”) to purchase common shares of the Company (“Common Shares”) to the Holder as additional compensation.
  • · Maturity: 3-year term.
  • · Conversion Price: The Debenture is convertible into Common Shares at US$0.21813 (the “Conversion Price”), being the US$ equivalent of C$0.30 per Common Share based on the Bank of Canada exchange rate immediately prior to the issuance of the Debenture.
  • · Warrants: Each Warrant is exercisable at C$0.40 per Common Share for a period of two years.
  • · Closing Date: August 13, 2025, with an effective date for the Debenture of August 8, 2025. The net proceeds of the Debenture have been received by the Company.
  • · Placement Fee: 5 percent of the principal amount, payable to the Holder in cash on closing.
  • · Conversion Limits: Total Common Shares ultimately issuable in connection with the Offering (including upon conversion of the Debenture, any interest payments that may be paid in Common Shares, and the exercise of Warrants) are capped at 65,248,201, representing 24.99 percent of the currently outstanding Common Shares.
  • · Ownership Restrictions: The Holder may not convert the Debenture or receive interest in Common Shares if doing so would cause the Holder’s ownership to exceed 19.9 percent of the outstanding Common Shares without prior Toronto Stock Exchange (“TSX”) clearance and shareholder approval.
  • · Change of Control: In the event of a change of control, the Debenture may be redeemed for principal and accrued interest, though the Holder may convert prior to the closing of such transaction.
  • · Listing: Neither the Debenture nor the Warrants will be listed on any exchange; however, the Common Shares issuable upon conversion or interest payment of the Debenture and/or exercise of the Warrants will be listed on the on the TSX and admitted to trading on the AIM market of the London Stock Exchange (“AIM”).
  • · Loan Agreement: The Company has received written confirmation from Republic Bank Limited (“RBL”) that the net proceeds of the Debenture satisfy an equivalent amount of the equity raise requirement under the Company’s Fourth Amended and Restated Loan Agreement (the “Loan Agreement”). Consequently, the Company will need to raise a further US$7.3 million in equity (net of any selling commissions) before December 31, 2025 to fully meet its equity obligations under the terms of the Loan Agreement.

Use of Proceeds

Net proceeds from the Offering will be used to fund the following development activities and reduce outstanding accounts payable:

1. · immediate commencement of drilling the Cascadura-4ST2 development well; and
2. · complete and tie-in the Cascadura-4ST2 and Cascadura-5 wells.

Further information on the Debenture and the Warrants

1. The Company closed a US$12.5 million private placement consisting of the Debenture and the Warrants with a Canadian private investor on August 13, 2025. Net proceeds from the Offering are intended to fund the remainder of the Company’s Cascadura 2025 development drilling program and to reduce outstanding accounts payable.
2. The Debenture has a three-year term and bears interest at a rate of 5 percent per annum, payable semi-annually. The Debenture is convertible into Common Shares of the Company at any time prior to maturity at the Conversion Price. At the Holder’s option, interest may be paid in cash or in Common Shares, with the number of shares determined based on the market price of the Common Shares and prevailing exchange rate at the time of payment, subject to approval by the TSX.
3. The Debenture is secured by a perfected security interest over all present and after-acquired personal property of Touchstone Exploration Inc. This includes an Alberta law general security agreement and a Barbados law charge over the shares of the Company’s subsidiary, Touchstone Exploration (Barbados) Ltd. The terms of the Debenture restrict Touchstone Exploration Inc. from granting liens over its property without the Holder’s consent, other than customary permitted liens.
4. As part of the Offering, the Company issued the 6,250,000 Warrants, each exercisable to acquire one Common Share at an exercise price of C$0.40 per share for a period of two years from the date of issuance.
5. The Company has received written confirmation from RBL that the proceeds from the Offering satisfy an equivalent portion of the equity raise requirement pursuant to the Loan Agreement. As a result, the Company is required to raise an additional $7.3 million in net equity proceeds on or before December 31, 2025 to remain in compliance with the terms of the Loan Agreement.
6. The Debenture provide the funds required to recommence the Company’s drilling program, and reduce the amount required to be raised under the Loan Agreement. The Company expects to satisfy the remainder of the fundraising requirement under the Loan Agreement by means of a further equity fundraising in 2025. That fundraising, together with the funds raised by the Debenture, are expected to satisfy the Company’s near-term capital requirements, notwithstanding the shortfall in funds received under the private placement announced on May 8, 2025.

May 8, 2025 Private Placement

On June 30, 2025, Touchstone Exploration Inc. announced that £10,324,500 of the £15,375,000 gross proceeds had not been received as of the TSX‑approved closing deadline of June 27, 2025. As a result, the Company closed on £5,050,500 in gross proceeds and issued 24,636,585 Common Shares.

The Company has not received any further proceeds from the May 8, 2025, private placement to date. Accordingly, the Company believes there is a high level of uncertainty as to whether it will receive the outstanding balance of proceeds of £10,324,500 and has therefore completed the Offering to partially secure its near-term capital requirements.

The Company has reserved all rights in connection with the May 8, 2025 private placement and will assess its position, including any losses incurred as a result of defaulted placing commitments, following the completion of its 2025 financing activities.

Touchstone Exploration Inc.

Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company’s Common Shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol “TXP”.

For further information about Touchstone, please visit www.touchstoneexploration.com or contact:

Touchstone Exploration Inc.

1. 1. 1. Paul Baay, President and Chief Executive Officer Tel: +1 (403) 750-4405
      2. Scott Budau, Chief Financial Officer
      3. Shore Capital (Nominated Advisor and Joint Broker)
      4. Daniel Bush / Toby Gibbs / Tom Knibbs Tel: +44 (0) 20 7408 4090
      5. Canaccord Genuity (Joint Broker)
      6. Adam James / Charlie Hammond Tel: +44 (0) 20 7523 8000
      7. FTI Consulting (Financial PR)
      8. Nick Hennis / Ben Brewerton Tel: +44 (0) 20 3727 1000
      9. Email: touchstone@fticonsulting.com

Advisories

Currency

For reference purposes in this announcement, one Canadian dollar (“C$”) has been translated into one United States dollar (“$” or “US$”) at a rate of 1.00 to 1.3753.

 

 

 

 

TTNGL loss after OFAC revocation

2025, 08/15

Phoenix Park Gas Processors Ltd (PPGPL) facility on the Point Lisas Industrial Estate, is owned 51 per cent by NGC and 39 per cent by Trinidad and Tobago NGL.

In the wake of the revocation of OFAC licences to explore gas fields in Venezuelan waters, TTNGL reported a loss after tax of $35.8 million.

In condensed interim financial statements for the 6 months ended 30 June 2025, TTNGL stated, “Following the announcement of the revocation of licences issued by the Office of Foreign Assets Control (OFAC) of the US Department of Treasury, regarding the exploration of gas fields in Venezuela, management has relooked its impairment assessment of the company’s shareholding investment in the Phoenix Park Gas Processors Ltd (PPGPL) group. This review was conducted based on the assessed most likely outcomes and risks associated with updated inputs and cash flows provided by PPGPL and the National Gas Company of Trinidad and Tobago. This assessment resulted in the recognition of an impairment loss of 85.2 million and consequently a loss after tax of $35.8 million (2024: profit after tax of $46.7 million). “

There was more promising news via its investment in PPGPL, which recorded an after-tax profit of US$19.3 million in the six-month period. TTNGL’s share of the PPGPL profit was $50.8 million.

NGL said that PPGPL’s profit after tax of US$19.3 million was driven by “higher uptime operating efficiency, a 2.4 per cent improvement in natural gas liquid content in the gas stream and continued cost rationalisation. This was achieved despite a marginal decrease in gas volumes to Point Lisas for processing (2025: 1,013 mmscfd vs. 2024: 1,038 mmscfd) and Mont Belvieu product prices for 2025 remaining flat year on year.”

NGL has not declared and paid dividends to shareholders because of issues relating to its impairment losses.

“TTNGL continues to explore the options available to remedy this, subject to requisite stakeholder and statutory approval. The success of the Government’s continued commitments to further exploration and continued efforts to secure a new OFAC licence has a direct impact on the prospects for additional gas volumes to PPGPL. Should these materialise, they can result in improvements in the financial performance of PPGPL and consequently, TTNGL. We remain committed to updating shareholders on these matters. “

 

 

 

 

TTNGL reports $35.8m loss after US revoked Dragon licences

Venezuelan Oil Minister Pedro Tellechea, Venezuelan Vice President Delcy Rodríguez and former energy minister Stuart Young signed the Dragon Gas Field licence in Caracas, Venezuela, in December 2024.

TTNGL says the decision by the US government to revoke licences for exploration of gas fields in Venezuela resulted in an after tax loss of $35.8 million.

“Following the announcement of the revocation of licences issued by the Office of Foreign Assets Control (OFAC) of the US Department of Treasury, regarding the exploration of gas fields in Venezuela, management has relooked its impairment assessment of the company’s shareholding investment in the Phoenix Park Gas Processors Ltd (PPGPL) group.

“This review was conducted based on the assessed most likely outcomes and risks associated with updated inputs and cash flows provided by PPGPL and the National Gas Company of TT (NGC),” the company’ said in its condensed interim financial statements for the six months ended June 30. This assessment resulted in the recognition of an impairment loss of $85.2 million and consequently a loss after tax of $35.8 million (2024: profit after tax of $$46.7 million),” it added.

In April, the US revoked the OFAC licences to pursue natural gas projects with Venezuela, specifically the Dragon field and the Cocuina-Manakin field. The licences allowed multinational energy giants Shell and BP, with state-owned NCG, to develop offshore gas fields near the Venezuelan maritime border. The Dragon field holds an estimated four trillion cubic feet of gas, with first exports initially slated for 2026.

Trinidad had already begun paying over US$1 million annually in taxes to Venezuela for the expected 20-year Dragon project. Citing concerns over Venezuela’s failure to restore democratic norms and manage illegal migration, the USA has effectively frozen the deal. Following revocation of the licences, the Energy Chamber of TT said the importation of pipeline gas from Venezuela for processing and onward sales to international markets as either LNG or petrochemicals, remains a significant economic opportunity for TT.

“It is important that the government of TT continues to engage actively with both the government of the US and Venezuela to find a mechanism to pursue this opportunity.”

After entering office as the new head of government, Prime Minister Kamla Persad-Bissessar gave the biggest hint that her administration, unlike previous governments, would eschew emphasis on the Dragon Field project with Venezuela.

“We will be foolish to not look elsewhere and we should have started that search long ago; we should not have put everything into Dragon gas. That is dead… kept alive for ten years, and if you couldn’t do that in ten years, you cannot do it now.”

There is possibly oil and gas in Tobago’s territorial waters.

Discussions with the US Secretary of State, Marco Rubio included the energy sector but not the Dragon gas project.

In its financial statement, TTNGL, incorporated in 2013 by the NGC to enable the public to participate in an initial public offering (IPO) to own an equity interest in PPGPL, benefitted from its investment in PPGPL, which recorded an after-tax profit of US$19.3 million ($130.86 million) in the 6-month period. TTNGL’s share of the PPGPL profit was $50.8 million.

TTNGL was unable to declare and pay dividends to shareholders because of impairment losses.

“TTNGL continues to explore the options available to remedy this, subject to requisite stakeholder and statutory approval.

“The success of the government’s continued commitments to further exploration and continued efforts to secure a new OFAC licence has a direct impact on the prospects for additional gas volumes to PPGPL. Should these materialise, they can result in improvements in the financial performance of PPGPL and consequently, TTNGL. We remain committed to updating shareholders on these matters.”

 

 

 

 

Exxon-TT energy deal

14 August

Dr Indera Sagewan-Ali admonished detractors of the billion-dollar deal officially struck between the government and ExxonMobil on August 12. She urged the energy industry to stop being sceptical.

“We need to stop nitpicking and start taking an eagle-eyed view of where the country needs to go.”If we do that, we will be less critical and offer constructive comments that would support and push the agenda that is best for our country.”

With oil and gas resources dwindling because of excessive extraction from mature fields, access to more oil and gas was beneficial to TT, regardless of the deal the government made with Exxon.

“Anything is better than where we currently are. While we do not know the details of this particular deal, I am of the strong view that whatever we get from it is better than zero, which is what we currently have.

She noted the benefits from the Exxon deal such as an initial US$12 million in signing fees. The US$12 million in seismic studies and the US$21 billion to be invested in exploration activities.

“That is money that we didn’t have before. It would mean money coming into TT. At least some of it will be circulating here because we have the human capital that could benefit in that area. While certainly a lot of it will be expended on foreign contractors and consultants it will be economic activity happening in TT and therefore it will be beneficial.”

There were very few oil companies with the technology, capacity or finances to exploit the resources in the deepwater acreage. As a result, deepwater bid rounds would engage more attention with Exxon’s presence.

On concerns over the production-sharing split and royalties, she was confident that TT’s experience in dealing with oil and gas companies would have given the government an edge that the Guyana lacked.

“We didn’t get into this business yesterday as in the case of Guyana. We have been in the business of negotiating exploration arrangements for a very long time.  We have to trust that we are a lot better at doing it than Guyana. It is a win for the current government. We must recognise that it was obviously in train, but I think the speed at which the government acted was highly commendable. The approach of government with respect to trying to monetise whatever oil and gas resources the country potentially still has shows that TT’s energy sector is once again really open for business.”

She commended the government on their intentions for diversification, saying that it sets the government apart with regard to plans outside the energy sector.

“Commentators criticise this deal and say ‘this is the same as the PNM putting all its eggs in the Dragon deal,” but I disagree, because every time the minister of energy speaks you hear him talk about energy diversification. I don’t think we have ever heard these things spoken about by a government as we have been hearing in the last three months.”

On August 13, the Energy Chamber welcomed the signing of the contract.

“The consolidation of blocks TTDA 17, 18, 19, 20, 21, 22 and 23 into one block 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 and simplifies interaction with the Ministry of Energy.

The chamber lauded the speed at which the government was able to complete the deal.

“We look forward to 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 and the modernisation of the licensing and approval process and improving transparency in the process.”

No Venezuela threat to Exxon deal

Prime Minister Kamla Persad-Bissessar and ExxonMobil Upstream Company VP of Global Exploration John Ardill signed a production-sharing contract between TT and the company, witnessed by Minister of Energy Dr Roodal Moonilal, and Minister Ernesto Kesar

Experts dismiss Venezuela as a threat to a momentous deal between Trinidad and Tobago and ExxonMobil search and drill for oil and gas in ultra-deep waters 150 miles off the east coast of Trinidad. Exxon is coming to drill in TT waters. These are accepted waters not in dispute with Venezuela TT is entitled to award these blocks to whoever we want to drill there.

On August 12, Prime Minister Kamla Persad-Bissessar and ExxonMobil VP John Ardill signed a production-sharing contract, expected to bring US$16-US$21 billion worth of investment. Seismic surveys and eventual exploratory drilling will take place in an area larger than Trinidad, created by the merger of seven blocks of marine acreage covering 2,700 square miles (7,000 square kilometres) at a depth of 6,500 feet (2,000 metres).

This is the TTUD1 block which abuts Guyana’s Stabroek block, part of which is in disputed waters.

In the disputed economic zone offshore, Venezuela says there should be no drilling of oil there until that matter is settled. They have sought to prevent ExxonMobil from doing any kind of seismic research and any drilling.

TT’s energy hopes had lain in Venezuela’s Dragon gas field, estimated to hold 4.2 trillion cubic feet of natural gas, but the US administration withdrew TT’s licence to receive such gas –granted by the US Treasury Department’s Office of Foreign Asset Control (OFAC), despite a 30 year lease granted by Venezuela’s Nicolas Maduro regime to TT .

With US sanctions, amid allegations of electoral fraud and narco-trafficking levelled against Maduro – against whom the US doubled its bounty to US$50 million – the Persad-Bissessar government sought TT’s energy fortunes elsewhere including the possibility of sourcing gas from Grenada, Guyana and Suriname.

Venezuelan interior minister Diosdado Cabello rekindled claims made in June that TT was serving as a base from which infiltrators were launching efforts to destabilise the Venezuelan government.

Regional tensions also arose from Venezuela’s long-standing claim to two-thirds of the area of Guyana, the Essequibo, arguing Guyana must not exploit resources in the oil-rich area until the protracted territorial dispute is decided at the International Court of Justice in The Hague, Netherlands.

Caricom hosted a meeting in St Vincent between Maduro and Guyana president Dr Irfaan Ali.

Guyana complained that Venezuelan naval vessels harassed Exxon oil platforms offshore Essequibo.

The dispute began when former president Hugo Chavez ( 1999-2013) nationalised ExxonMobil assets in 2007 and the company complained of inadequate compensation.

TTUD1 block is adjacent to the disputed area in the Essequibo where ExxonMobil would like to drill. There is speculation the US Navy would stop the Venezuelans interfering with ExxonMobil.

 

 

 

 

 

UWI Press

2025-08-29

Sixty Years of Independence

Achievements, Challenges and the Road Ahead for Trinidad and Tobago
Edited by Bhoendradatt Tewarie, Roger Hosein and Rebecca Gookool-Bosland

558 Pages Paperback 9789766580261 TT$45.00

All countries aim to achieve high rates of economic growth; many strive to improve living standards and quality of life for their people. However, in a world where events and circumstances often influence a country and its economy, these factors are not always fully within the control of those responsible for leadership and development.

Sixty Years of Independence examines Trinidad and Tobago’s progress since independence in 1962, against such strivings and challenges, with the aim of identifying both genuine achievements and persistent flaws or gaps.

The contributors to this volume share common assumptions that it is essential to broaden and deepen democracy; that it is desirable to achieve shared prosperity through higher levels of productivity and more meaningful levels of economic development; and that the drivers of economic progress, as well as the active build out of social infrastructure to support human development, are both essential for genuine and sustainable developmental progress.

These reflections on Trinidad and Tobago’s sixty-year journey as an independent, sovereign nation are well worth reading not only for the information they provide, nor solely for the historical context they offer across various sectors, or even for the fact that the contributors are individuals who have both shaped and reflected on national development. This book is worth reading because each chapter presents thoughtful, substantive insights that encourage readers to examine their own perspectives on development, whether they live, and to consider how progress might be pursued more effectively and meaningfully. For policymakers in particular, this volume offers both inspiration and practical guidance on the way forward.

 

 

Sixty Years of Independence:

a review

Indera Sagewan August 16, 2025

Sixty Years of Independence, compiled by Bhoendradatt Tewarie, Roger Hosein and Rebecca Gookool-Bosland, offers an ambitious and multi-sectoral evaluation of Trinidad and Tobago’s development trajectory since 1962, identifying achievements, missteps and the policy and governance reforms for a sustainable future. It is a must-read for students, policymakers, economists and development analysts.

The editors assembled a wide array of disciplinary expertise—from economics, political economy, and environmental science to health, education, and criminology. This multi-authored approach enriches the work with sector-specific data, historical timelines, comparative analysis, and regional benchmarks. Importantly, the integration of policy recommendations within each chapter—rather than relegating them to a final summary—reinforces the practical orientation of the volume and makes the arguments immediately relevant to ongoing policy debates.

The central argument woven throughout is clear: while Trinidad and Tobago recorded commendable gains in education, healthcare, industrial development and institutional capacity, progress was consistently undermined by structural dependency on energy, weak governance frameworks and a chronic lack of diversification. This dynamic, where historical achievement coexists with persistent vulnerability, frames both the analytical discussion and the prescriptive agenda.

Each chapter engages with a critical sector or policy area. Opening chapters on energy and agriculture set the tone. Kevin Ramnarine’s history of the oil and gas sector traces the industry’s evolution from pre-Independence roots to current challenges. His account blends economic data with political economy insight to show how the energy sector has both underpinned national development and entrenched vulnerability through price cycles, production decline and over-dependence. Essentially, it forces us to confront the dilemma of putting all our eggs in one basket.

The agriculture and food security chapter by Isaac, Maharaj and Joseph offers the counterpoint: a sector that could have reduced national vulnerability but instead languished under inconsistent policy, climate pressures and weak institutional support; victim of Dutch Disease. By connecting agricultural stagnation to food security, they reinforce the broader argument about missed diversification opportunities, making strong recommendations for realignment and revitalisation.

Human development chapters—on education (De Lisle, et al), health (Sharma, et al) and human capital formation (Tewarie)—serve as a thematic bridge between historical evolution and forward-looking reform. They acknowledge genuine gains, from reduced infant and maternal mortality to expanded access to education and the creation of tertiary institutions, while underscoring inequities, inefficiencies and skill mismatches that hinder inclusive growth.   Statistical evidence celebrates successes and highlights persistent gaps that policy must address.

Environmental management (Gobin, Kanhai, Asmath) is treated not as an isolated ecological matter but as a cross-cutting development concern, with implications for industrial policy, disaster resilience and public health. This perspective flows naturally into later chapters on crime (Heerah), trade and manufacturing (Hosein, et al; Williams), and macroeconomic strategy (Hosein, et al, again), all of which confirm the importance of governance, institutional effectiveness and strategic economic positioning.

A notable and welcome novelty of the book is the inclusion of Tobago’s distinct development profile (James, Hazel, Bissoon), challenging the implicit Trinidad-centric lens. The discussion of productivity, labour markets and GDP per capita disparities makes a strong case for subnational policy differentiation.

The final chapter by Tewarie integrates the volume’s findings into a coherent reform agenda centred on governance, constitutional change, anti-corruption measures and policy coherence. Here, the central argument is articulated most explicitly: without structural reforms in governance and economic strategy, past achievements are at risk of erosion under mounting global, regional and domestic pressures.

Despite its breadth, the book maintains thematic coherence. Recurring motifs—energy dependency, governance quality, diversification urgency, and human capital development—link chapters into a connected narrative rather than a loose anthology. If there is a shortcoming, it is that the crime chapter could have gone further in linking security concerns to investment climate, brain drain and community resilience, thereby tying it more closely to the economic diversification theme.

Overall, Sixty Years of Independence is a timely and significant contribution to the national conversation on development. Its central thesis—that sustainable progress requires structural economic diversification, governance reform and human capital optimisation—is grounded in rigorous sectoral histories, statistical analysis, and comparative insights. The editors strike a careful balance between commemoration and critical reflection, making the text both a historical record and a policy roadmap.

For scholars, policymakers and engaged citizens, the volume offers a valuable synthesis of where Trinidad and Tobago stands after six decades of independence. It avoids both uncritical celebration and fatalistic pessimism, recognising that the same capacity which enabled past achievements can, if strategically mobilised, address the vulnerabilities that persist. In provoking informed debate on the road ahead, it delivers on its promise to contribute meaningfully to the shaping of Trinidad and Tobago’s next chapter.

 

 

 

 

Oil remains in the driver seat

$9 billion for kerosene imports

The defunct Pointe-a-Pierre refinery still looms over the former Petrotrin camp, where former company homes are also in a state of disrepair.

Shocked by a report that Trinidad and Tobago imported $9 billion worth of kerosene, Prime Minister Kamla Persad-Bissessar emphasised the urgent need to reopen the former Petrotrin refinery, which produced kerosene and other products being imported. At a United National Congress meeting at Camden Hall, Couva, Persad-Bissessar said she received a report from Foreign and Caricom Affairs Minister Sean Sobers on the impact of U S tariffs on Trinidad and Tobago.

“What struck me is that they sent me a table containing the balance of trade between the US and Trinidad and Tobago and on that list, we are importing with hard US currency items that we used to produce at the refinery: kerosene, jet fuel, other energy products, what you put in your car. Now we sell our oil and then we buy back the refined product with US dollars. That making any sense to you? We have to get that refinery going; $9 billion in kerosene we importing, when we were producing that here.”

Kerosene is a petroleum-based fuel used for heating, lighting and also in certain engines, including some aircraft engines.

She appointed an expertise-driven team to map a phased restart of the refinery, aimed at creating jobs, generating foreign exchange and ensuring fuel security. She acknowledged views opposing dependence on oil and gas.

“But to them I say: our nation has a competitive advantage in the energy sector and we should exploit those resources.”

Other countries exploited their resources to build their nations. Persad-Bissessar thanked Finance Minister Davendranath Tancoo and Planning Minister Kennedy Swaratsingh, for initiating structured dialogues with the International Financial Corporation (IFC), World Bank and Inter-American Development Bank (IDB), targeting US$2-5 billion over three years for investment in roads, water, hospitals, schools and climate resilience. She could show detractors who questioned how Government would fund these projects.

“The world is now coming to do business because Trinidad and Tobago is open for business.”

For the first time since 2003, ExxonMobil was returning to Trinidad and Tobago. There would be more decent jobs from exploration to services, from Point Lisas to the Southland, more reliable fuel and power to lower costs for transport, businesses,and households. Confidence was being restored and the world was responding:

“In 100 days, we have begun to put the economy back in gear with discipline, transparency and a plan that prioritises the ordinary family.”

 

 

 

 

UNDP fund

11 August

UNDP Resident Representative Ugo Blanco, outlined three key proposals for TT to Prime Minister Kamla Persad-Bissessar, Finance Minister Davendranath Tancoo and Planning Minister Dr Kennedy Swaratsingh during engagements on major initiatives for national growth and development on August 7.

The first was a social high impact fund, a UNDP-managed initiative to channel private sector financing to NGOs, civil society organisations and SMEs, targeting the mobilisation of US$ 20 million over three years, in partnership with the Housing Ministry.

The second was the regional launch of the 2025 Human Development Report which TT will host. The Latin America and Caribbean launch of this event can position it as a leader in regional development discourse.

The final area of discussion focuses on a youth forum to establish a national platform to train, mentor and empower youth from diverse backgrounds. The focus will be on young people from rural, vulnerable, and agricultural sectors through co-leadership with a line ministry.

The UNDP emphasised that these initiatives are closely aligned with the government’s vision for driving economic growth and sustainable development in TT and across the region.

These investments form part of the broader national effort to attract investment, create jobs and deliver meaningful benefits for the people .

 

 

US tariffs could deepen forex challenges

August 10, 2025

UWI Economcs don Prof. Roger Hosein warned that newly imposed 15% US tariffs on key Trinidad and Tobago energy exports threaten to tighten foreign exchange flows and strain the fragile currency regime.

However, Special Economic Zones offer an opportunity to help mitigate these shocks. Hosein’s comments come in response to sweeping new US tariffs that took effect Thursday, hitting dozens of countries.

The measures, implemented under President Donald Trump, raised tariffs on a wide range of imports from Trinidad and Tobago to the United States, increasing them from 10% to 15%.

“The recent 15% US tariff on T&T’s exports will no doubt reduce its foreign exchange inflows, particularly from key non-crude energy products such as methanol and ammonia, which are directly affected by the measure. 

The situation with urea exports, another important energy product, still remains somewhat uncertain.

“While crude oil and LNG remain exempt, these downstream energy (methanol and ammonia) commodities represent a large share of industrial export earnings and are vital to sustaining T&T’s external account balance. This 15% tariff will introduce an immediate negative terms-of-trade shock, compressing export revenues without a necessary offsetting reduction in import demand, especially as regards consumables.

In such a context, there would likely be an erosion in foreign currency inflows and this will intensify pressure on T&T’s managed float regime, already constrained by the ‘reserves less external debt.”

It took 15 years for the “reserves less external debt” to climb from a negative value to a peak of US$8,959.6 million in 2014. In the following 11 years, this figure has now slipped back to a negative US$864.3 million.

Importers of capital goods, industrial inputs, pharmaceuticals and refined petroleum may possibly now face more stringent access to foreign exchange, which could disrupt supply chains and delay production.

“Other things constant, this tariff amounts to a supply-side compression of the tradable sector, with macroeconomic spillovers into inflation, investment delays and a weakened recovery in manufacturing and construction.

The effect of this 15% tariff will likely be an overall decline in export volume and hence export revenues from the USA.”

From an import perspective, the majority of T&T’s high-value imports from the United States are manufactured goods, including machinery, industrial chemicals, aircraft parts, telecommunications equipment, pumps, compressors and medical instruments.

“These are capital- and technology-intensive items, essential to the functioning of T&T’s industrial, energy, health and construction sectors. In contrast, traditional raw materials and basic food items make up a much smaller share of the import basket.

Even where food is imported, it’s often processed, such as cereals, edible preparations and preserved meats, again falling under manufactured classifications.”

The broad-based tariff hikes will disrupt global supply chains, raise global input costs and redirect US demand toward untaxed or cheaper suppliers.

“This shift may raise world prices for certain goods and increase competition for non-US suppliers. For T&T, the combination of reduced export earnings due to its own tariff penalty (15%) and rising import costs globally will likely mean higher prices for many imported manufactured goods and hence a possible further rationing of foreign exchange.

The result is possibly imported inflation, delayed investment and a weaker productivity recovery.”

Refined petroleum products were Trinidad and Tobago’s largest import from the United States in 2024, valued at over US$600 millionThese imports are essential for domestic consumption and for supporting T&T’s position as a regional fuel supplier.

A substantial share is re-exported by Paria Fuel Trading Company to neighbouring Caribbean markets as part of its commercial operations

“Significantly, the United States absorbs 45.2% of T&T’s total merchandise exports, making it the single most dominant destination by a wide margin. This heavy concentration exposes T&T to asymmetric risk, especially with aggressive trade policies like the new 15% US tariff.

Policymakers should rethink our economy’s overdependence on the USA and further pursue deliberate diversification to protect long-term economic stability. Failure to do so exposes the country to unpredictable trade shocks beyond our control.”

Trade partners Jamaica, Guyana, Barbados, and other Caricom states offer strategic advantages, including geographic proximity, shared language and regulatory frameworks and access through Caricom, making them ideal candidates for deepening trade ties.

“These markets are already familiar with T&T products and present lower logistical costs, fewer currency risks and faster resolution of trade disputes. More importantly, the intra-Caricom trade operates under preferential rules of origin and zero intra-regional tariffs, helping to cushion exporters from external tariff shocks like the US 15% tariff levy. Expanding trade within the region not only reduces concentration risk but also fosters regional supply chain integration.

A more focused push into regional markets could absorb some of the slack from any US contraction while simultaneously building long-term economic resilience and anchoring T&T’s exports in more integration aligned territories.”

The move of Special Economic Zones from policy concept to practical implementation marks a pivotal moment in industrial strategy, signalling the need to shift focus from planning to disciplined execution.

“TT’s Special Economic Zones (SEZ) framework is now legally established and has entered its early operational phase. The SEZ Authority is active, and a limited number of firms have already been formally designated. SEZs in T&T represent a critical instrument for structural transformation in the face of declining energy rents, mounting trade volatility, and a fragmented global trading system.

These geographically defined zones operate under a tailored regulatory and fiscal regime designed to accelerate export-led industrialisation, crowd in investment and build a globally competitive non-energy production base.”

The SEZ regime recognises two principal categories:

• • a) SEZ Operators, responsible for developing and managing infrastructure within the zones; and
  • b) Single Zone Enterprises, which are firms licensed to conduct specified economic activity within an approved zone.

“Both categories are eligible for a strategic suite of incentives, designed to reduce the cost of doing business, support firm-level productivity, and improve the economy’s overall trade competitiveness. These include:

• • • a) import duty exemptions on building materials, machinery and equipment, capital goods, spare parts, raw materials, stock-in-trade, and other approved inputs;
    • b) zero-rated VAT on those same categories, plus tax-free treatment of intra-zone trade, foreign services to SEZ firms, and certain financial and insurance services;
    • c) property tax and stamp duty relief on assets and transactions tied to zone activities. Crucially, these benefits are not automatic.

Approval from the SEZ Authority is required, and each incentive must be tied directly to an authorised economic activity, reinforcing accountability and preventing abuse.”

Hosein said that in the current macroeconomic climate, highlighted by the newly imposed 15% US tariff, Special Economic Zones offer a timely and concrete policy response.

“They offer the prospect of reduced production costs, enhanced price competitiveness, and create the mechanism for reorienting trade toward more stable or preferential markets such as Caricom, Latin America and Africa.

In this way, SEZs can help mitigate exposure to concentrated export risks and shift the trade structure toward greater resilience and regional integration. Simultaneously, the global relocation of supply chains, driven by rising input costs, geopolitical tensions and a retreat from hyper-globalisation, presents a narrow window of opportunity for T&T.

SEZs, if marketed strategically and supported by modern infrastructure, can serve as magnets for investment from firms looking to derisk operations and diversify their production networks. This gives T&T a real shot at establishing itself as a competitive manufacturing and logistics hub in the Western hemisphere.”

However, the presence of incentives alone is not enough.

“To ensure SEZs do not evolve into isolated enclaves with minimal spillover, they must be embedded within the wider economic fabric. This means creating strong backward linkages with local suppliers, workforce training systems, transport and logistics networks and innovation ecosystems.

Without this integration, SEZs risk functioning as low-tax silos with limited developmental dividends.”

Failure to implement SEZs at scale and with urgency could result in missed investment opportunities, prolonged foreign exchange vulnerability and continued stagnation in non-energy export growth.

“At this stage, delays are no longer mere bureaucratic hold-ups; they represent strategic economic costs. With energy revenues declining and traditional markets becoming more volatile, SEZs must now be elevated as central pillars in T&T’s reindustrialisation effort. If the current momentum is sustained and the zones are aligned with industrial policy, skills development and export diversification, SEZs can anchor long-run structural change, improve the tradable sector’s share of GDP and offer a durable response to both internal economic constraints and external shocks.”

 

 

Can we do what needs to be done peacefully?

Dr Bhoendradatt Tewarie 7 August 2025

One of the big discussions on the T&T economy over several years and continuing, is foreign exchange availability and foreign exchange shortage and how to solve this persistent problem. A lot of the discussion has focused on the unfairness of distribution and who gets the most US dollars and why? Why does PriceSmart or Massy or ANSA McAL get a big share of forex, for instance, and not SMEs?

The former minister of finance even cited credit card usage, suggesting abuse by individuals. Central Bank policy has been blamed. Banking sector practice has been blamed. There have been accusations of complicity between some banks and their favoured customers and even accusations of a functioning cartel.

Some $100 million annually is put aside to protect the manufacturing sector through the Exim Bank. There might be a distribution problem but is that the major problem? The distribution quarrels are prompted by scarcity.

In a situation where export earnings are not favourable, where there is a forex revenue shortage, where the available pool is not large enough to meet all of our desires for imports, continuous demand without replenishment of forex will lead to depletion. Therefore, the real forex problem here is not about distribution. It is about supply, demand and dependable sources of replenishment.

No matter what criteria one establishes for a fairer system of distribution, these will not solve the real problem of the size of the forex pool. Forex in the pool can only increase with more exports of goods and services, reduction of imports, increases in tourist arrivals and in tourist spending per capita. The pool of forex can also shrink and eventually disappear as demand begins to use it up without reliable sources of replenishment. This is not complicated; it is basic logic.

We are in this situation because production of natural gas is severely down and forex revenue is natural gas dependent. The problem is structural. For some time now, we have not been able to supply what Atlantic LNG needs. So, even with unitisation of the trains and a ten per cent profit take by NGC, we are getting less forex revenue than before from that source.

Several plants in our petrochemical sector are down, others are operating at reduced capacity. So, the sector’s revenue and profits are smaller, which reduces the revenue stream to the Government. Manatee may not begin to produce for a year or perhaps two. Even a dedicated thrust in production in local jurisdictions may not yield much more.

OFAC licences on Dragon and Cocuina fields have been withdrawn. With the restoration of Chevron’s licence to drill in Venezuela, there is some hope now for piping natural gas from Venezuela to NGC through Shell and BP.

The context, given current pressure on Iran, intended sanctions on Russia and ramping up of oil and natural gas production in Saudi Arabia and the Middle East, is favourable. But even with success, meeting natural gas needs and closing the revenue gap are some way off.

We can make up some of it over the medium and longer term in energy. But what happens from now until then? Can we budget at the same level of expenditure? The only options for immediate relief are other sources of forex revenue, reduced forex expenditure, or borrowing, which increases expenditure.

Tourism earnings can be a source; that is how Barbados replenishes its limited reserves. More export earnings from the existing manufacturing sector, services exports growth linked to the global digital value chain and new export-oriented investments that capitalise on our tertiary pool of graduates in a range of disciplines for a range of sectors, as we ramp up local production and reduce imports, are good options. All of these things are doable but, even if successful, these will be phased over time.

Now if we did both, side by side and simultaneously, that is, ramp up natural gas, petrochemicals and LNG production and speed up investment and production-yielding diversified exports to a range of markets and increase tourist arrivals, we could end up in a good place and the pool of foreign exchange will be large enough to eliminate any worry.

How helpful is looking at better forex distribution from the existing dwindling pool as a solution to the forex problem? What we have to do is known; they are challenging but doable.

An important question is can we do it peacefully together, or will we have to ask the IMF for help?

 

 

Foreign exchange crisis: Part 2

2025, 07/06

Economist Mariano Browne., Chief Executive Officer of the Arthur Lok Jack Global School of Business wrote,

Comments suggest that a flow analysis demonstrating how commercial banks deal with the public’s foreign currency deposits. was biased towards defending the banking sector. Some had difficulty understanding why customers could not withdraw their foreign currency deposit in foreign cash.

Or why a depositor could not transfer (meaning sell) their foreign currency deposit to a third party. Another suggested that commercial banks were always “long”, meaning banks held more forex assets than liabilities, thus reducing the supply available to the market.

The short answer to the first comment is that banks hold minimal foreign cash balances. Central Bank monthly data show that banks’ foreign cash holdings are approximately 1 per cent of their foreign assets. Most forex deposits are made through “instruments”, meaning cheques, bankers’ drafts, or electronic remittances, not cash. Therefore, the banks will never have enough foreign cash to give customers who want “cash in hand”.

Formerly, cash would be supplemented by travellers’ cheques. Currently, the presumption is that customers would use debit or credit cards to access cash at an ATM or pay for their purchases. Only one bank has an internationally accepted debit card.

The Central Bank constantly advertises that purchases or sales of foreign exchange are legal only if done by licensees. There is no local settlement system that allows customers/depositors to transfer domestic forex balances between themselves. To do so, customers must ask a commercial bank to make the transfer.

By law, banks have a monopoly on electronic money transfers except for Western Union. The bank would refuse unless it could be demonstrated that it was a valid commercial transaction. Banks can use discretion with “retail” gifts between customers. Legal tender in Trinidad and Tobago is the TT dollar and banks have the legal right to “discourage” US dollar sales between customers.

Chart 1 details holdings of US dollar assets and liabilities for the commercial banking sector as detailed by the CBTT Monthly Asset and Liability Statements. The graph shows foreign assets and foreign liabilities were virtually identical until 2012, when foreign assets began to outstrip foreign liabilities. As of December 2024, that difference amounted to USD 730 million. It is not clear what this difference represents. Banks and their subsidiaries increasingly acted as investment agents for customers. There is public cognitive dissonance and bias regarding the foreign exchange scarcity.

This translates into the “perception” that the forex scarcity is a result of the commercial banks preferring corporate customers at the expense of the average citizens and their “smaller needs”.

The difference between foreign currency liabilities and foreign asset holdings has been interpreted as commercial banks investing funds on their own behalf that could be sold to the public. The CBTT Annual Economic Survey 2024 corroborates the increase in bank holdings of short-term debt securities.

The CBTT is the appropriate authority to clear up this perception by identifying reasons for the change. It is also noteworthy that the compounded growth rate (CAGR) for foreign currency deposits between 2014 and 2023 is almost identical to the broad money supply, 1.9 per cent compared to 1.95 per cent. CBTT data showing purchases and sales of forex is clear.

There is a market shortfall in available foreign currency. The amount of forex sold to the banking sector is less than demanded and the CBTT monthly injection is insufficient to fill the gap. The current scarcity has been compounded by a sharp decline in export receipts/revenue as prices of ammonia, methanol and urea declined sharply, resulting in a trade deficit.

The 2024 Review of the economy documents this change “The deterioration in the trade balance during the review period was sparked by a 28.4 per cent contraction in total exports from $54,086.2 million in 2023 to $38,721.2 million in 2024, compounded by a 19.3 per cent expansion in total imports from $33,566.3 million to $40,029.0 million (Appendix 29).”

The CBTT reported that the visible trade position improved in 2024 fourth quarter, recording a surplus of USD 417.5 million. This suggests that 2024 net position was negative. By now, first-quarter trade data should be publicly accessible. It is not. Marla Dukharan ably demonstrated that the CBTT must address the persistent outflows related to net errors and omissions, which continue to weigh on liquid foreign-exchange reserves.

 

 

 

 

‘Rejecting electricity rate hikes comes with costs’

2025, 08/06

With the Government’s firm stance against the electricity rate hike proposed by the Regulated Industries Commission (RIC), concerns mount over the long-term financial health of the T&T Electricity Commission (T&TEC).

Public Utilities Minister, Barry Pararath said he intended to take a proposal to Cabinet to reject the recommendation of the RIC to increase electricity rates for commercial (by between 37 per cent and 51 per cent) and residential customers, from 15 per cent to 64 per cent .

The rejection raises critical questions about how the utility company would sustain its operations, modernise aging infrastructure and maintain reliable service—especially in the face of rising costs and continued reliance on public subsidies. Economist Dr Ronald Ramkissoon cautioned that without clarity on the funding source for continued subsidies, sustainability remains uncertain.

“It’s not a good idea unless we know where the money for subsidising electricity is going to be coming from and they need to tell the population that…Unless, of course the Government has thought about it, has a plan and they know where the money is going to come from to continue to subsidise electricity.”

Former public utilities minister Marvin Gonzales expressed concern over the sustainability of the subsidy, questioning its funding source. He warned that the Government’s decision could potentially drive TTEC’s subsidy burden from TT$700 million to TT$1 billion—a fiscal strain that may pressure the national budget and force a realignment of spending priorities.

The 2023 RIC recommendation to raise electricity tariffs was grounded in a need to align pricing with actual costs and help T&TEC reduce its dependency on Government support. However, the Government’s rejection, likely shaped by social and political considerations—including concern for vulnerable households—leaves a substantial funding gap.
Ramkissoon echoed the need for a balanced approach.

“We would like an economy in which prices are efficient and the economy is efficiently run. And we would like that the prices we pay for utilities, et cetera, are reasonable. The poor and those at the lower end of the economic spectrum should be helped in respect of the cost of utilities. I think that that is important.

“And I think it is not abandoning the poor but you need to do that in a way in which the economy remains efficient, that there is growth and we should have a proper economy, a properly managed economy over time…We need a properly managed economy, sustainable…. Whatever you do, you want to make sure it is sustainable over time,”    Ramkissoon advised.

He also underscored a troubling trend in society: the casual disregard for basic utilities such as electricity and water, often viewed as limitless and free by some.

“Many of us would leave the lights on forever. We will not tell our family to take off the lights, we will run the water. We see it all around us, whether to water the plants, wash the car, whatever. But some of us understand what we think is free is not free. There are certain things we consider to be free but indeed, they are not.

Somebody somewhere is paying for it. Either the taxpayers and sometimes I wonder if the plan is going to be to increase corporate and individual income tax because that is one way Government gets money.”

T&TEC probably owes State-owned National Gas Company over $ 5 billion, the elephant in the room as the utility company currently cannot service its loans. Unless T&TEC is granted the ability to recover modest revenue for the services it provides, the utility would be forced to rely more heavily on Government subventions—funding intrinsically tied to the State’s revenue stream.

This dependency could compromise T&TEC’s capacity to deliver reliable service to citizens, ultimately weakening the broader national economy.
Before the Government’s decision unravelled months of careful planning, the proposal to revise electricity rates had represented more than figures—it was a vision.
Behind it stood a team of professionals committed to navigating the complex terrain of utility regulation with purpose and fairness.

Public Utilities Minister Barry Padarath fired back at opposition criticism.

“He has no moral authority to be asking anyone about where the money is coming from. He sat and participated first hand in a government that allowed a $5 billion debt to accumulate between T&TEC and NGC. Their only payment plan was to impose harsh tariffs on the population who were already reeling from an economy that the PNM crashed.

“Instead of addressing the over $1.5 billion dollars in outstanding receivables that was accumulated under his tenure as minister of public utilities between ministries, State enterprises and T&TEC, the PNM attempted to drive the company into the ground with their own solution being hardship on citizens with new electricity rates,” Padarath said.

He challenged why the former Cabinet sat on the RIC’s recommendations for nearly two years without action. The Minister however, assured that in the coming days the Government would say more about the process to reject the rates. Padarath emphasised that fiscal recovery would not come from higher utility rates or increased taxation.

“We intend over the next five years to improve the quality of service to the population, reduce the company’s debt and outstanding receivables. It is ambitious however achievable in the five years.”

He underscored the Government’s commitment to attracting foreign investment, expanding renewable energy—particularly solar and wind—and strengthening the manufacturing sector.

“We intend to focus on inviting more proposals for solar energy with other multinationals, exploring wind energy and encouraging the injection of capital investment into the energy and non-energy sector.”

Manufacturing is an area that must be expanded.

“Therefore, electricity and water rates impact all of these sectors. The former ministers used to operate in silos. Today our Government works across ministries in tandem.”

 

 

 

 

 

Offshore wind assessment

24 July 2025

Peter Cavendish, Dr Roodal Moonilal, Minister of Energy; Penelope Bradshaw-Niles, permanent secretary Ministry of Energy; Karinsa Tulsie, permanent secretary (acting)Ministry of Energy; Dr Vernon Paltoo, president, National Energy.  –  Photo courtesy Ministry of Energy

Energy Minister Roodal Moonilal said the ministry will continue to pursue offshore wind development, as the Wind Resource Assessment Programme (WRAP) ends. The ministry will be issuing a request for proposals to conduct an offshore wind resource assessment programme.

“It is my intention to have bankable data available for investors by 2026, identifying the best sites both for onshore and offshore wind deployment,” he told the Validation Workshop for the European Union-funded National Wind Energy Action Plan at the National Energy head office in Couva.

The workshop, hosted by the ministry, aims to progress the action plan for the national wind energy through presentations and discussions.

Moonilal said wind is a key resource for utility-scale power development in TT. He noted the progress of WRAP, which is set to expand with two additional wind measurement devices in the Los Iros/ Santa Flora and Toco/Manzanilla areas by the end of the week.

National Energy president Dr Vernon Paltoo said, “As the executing agency for WRAP, National Energy remains fully committed to our ministry, our partners and people of TT. We are determined to ensure that our energy transition remains focused, ambitious and above all, achievable.

 

 

 

Brechin Castle Solar Farm

2025, 07/11

The Brechin Castle Solar, a joint venture of bp, Shell, and a subsidiary of the National Gas Company, welcomed key stakeholders to its project site in Couva.

Attending were Minister of Energy Dr Roodal Moonilal, Minister of Public Utilities Barry Padarath, Minister of Housing David Lee, Minister in the Ministry of Energy Ernesto Kesar, Minister in the Ministry of Public Utilities, Clyde Elder, along with other Government officials, invited dignitaries, executives, and representatives from the joint venture shareholders.

A project briefing, detailing the progress made to date on the Brechin Castle facility was followed by a guided bus tour of the solar farm, providing guests with a firsthand view of the installation of thousands of solar photovoltaic (PV) panels in place across the site.

Once operational, the Brechin Castle Solar Farm will represent the country’s largest renewable energy development to date, helping to diversify Trinidad and Tobago’s energy mix, lower carbon emissions and deliver cleaner energy to the national grid.

The solar farm has installed capacity of 92 megawatts and is projected to be operational by October this year. It is due to provide clean energy equivalent to the needs of 31,500 homes.