The December clearance builds on the August 2025 PSC signed between ExxonMobil and Trinidad and Tobago for the TTUD‑1 block, a consolidated ultra-deepwater area covering more than 7,100 square kilometers off the east coast. The agreement represents Exxon’s re-entry into Trinidadian waters after more than two decades and positions the twin-island republic at the center of renewed upstream interest in the Atlantic Basin as global energy markets seek new supply sources and deeper inventories.

The Ultra Deep 1 block consolidates seven previously separate areas that were not awarded in the government’s 2025 competitive deepwater bidding round, and ExxonMobil secured a 100% working interest in the acreage. Early estimates suggest first-phase expenditures of about $42.5 million for 3D seismic acquisition, with potential total investment — should commercial discoveries materialize — ranging from roughly $16.4 billion to more than $21.7 billion. The initial work program envisions seismic data collection followed by up to two exploratory wells, with the “first shot” seismic survey now expected to begin in early 2026.

Beyond the technical milestones, the Exxon deal carries outsized implications for Trinidad’s energy strategy. Once among the most prolific gas and oil producers in the Caribbean, the country has seen hydrocarbon output plateau and, in some segments, decline in recent years. The award of TTUD-1 comes at a time when policymakers are hoping to breathe new life into upstream exploration, attract major-company expertise and investment and signal confidence to other potential entrants in Trinidad’s deepwater frontier. The government has also tied the agreement to enhanced local content provisions, including training contributions, technical assistance, scholarships and other obligations designed to ensure that potential economic benefits extend beyond the balance sheet of the operator.

Strategically, Exxon’s return can be seen as part of a broader repositioning of the Caribbean in global energy markets. With supermajors and independent producers chasing geology in frontier basins from Guyana to Suriname, the region is emerging as a dynamic basin of interest. ExxonMobil’s success in neighboring Guyana’s Stabroek block – where discoveries have already resulted in more than 11 billion barrels of recoverable resources – undoubtedly influences its Trinidad strategy. The proximity of TTUD-1 to proven geology gives both Exxon and the Trinidadian government optimism that meaningful discoveries could come sooner rather than later, potentially leveraging existing infrastructure to accelerate development timelines if commercial hydrocarbons are found.

As the Caribbean prepares to host Caribbean Energy Week 2026 in Paramaribo from March 30 to April 1, the Exxon-TTUD-1 story will figure prominently in investor discussions and regional strategy sessions. The event – a cross-border platform for governments, financiers and industry leaders to explore hydrocarbons, power, renewables and supply chain opportunities – arrives at a time when the region’s energy landscape is shifting rapidly. Trinidad’s experience with Ultra Deep 1 will be a case study of how legacy producers can attract global majors back into frontier territories and what that means for sovereign energy strategies in an era when global demand dynamics and geopolitics continue to evolve.

If seismic results and exploration drilling validate expectations, Trinidad could see a new chapter of upstream activity that complements its existing LNG and petrochemical capacity, bolsters fiscal revenues and enhances its standing as a regional energy hub. At the same time, the deal will prompt deeper dialogue on how Caribbean states balance hydrocarbon development with energy transition priorities – a conversation set to unfold in full at CEW 2026.

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