Exxon Mobil, opens new tab could invest as much as $21.7 billion in Trinidad and Tobago if the U.S. energy major finds reserves in a large deepwater area it was awarded on Tuesday to explore for oil and gas in the Caribbean country, Energy Minister Roodal Moonilal said.
Moonilal was speaking at an event in Port of Spain where a production-sharing contract was signed with Exxon, marking its return to the country after 20 years.
Reuters reported last week that government had agreed to grant Exxon access to an area equivalent to seven blocks and located northwest of its prolific Stabroek block offshore Guyana.
“What we are awarding today is larger than the surface area of the country,” Moonilal said.
Exxon and Trinidad’s government negotiated the deal in “record time,” Exxon’s Vice President of global exploration John Ardill said at the signing ceremony, adding that the company wants to use its knowledge about the Caribbean geology and replicate its success in Guyana.
Exxon’s initial exploration plan will need a $42 million investment for 3D seismic and up to two exploration wells, Trinidad’s officials said. The first well could be drilled after completing seismic, to begin in six months, Ardill added.
Trinidad’s Prime Minister Kamla Persad has promised that her country will review fiscal terms to further attract investment for its energy sector.
“Trinidad will not wait for the end of any energy era,” she said. “Our principle is simple: investment goes where it is welcomed and stays where it is well treated.”
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