ExxonMobil's latest offshore campaign in Trinidad and Tobago could generate over $20bn in new investment opportunities, a report published by Rystad Energy on November 6 found, with the project potentially triggering the turnaround of the Caribbean nation's struggling energy sector.

The US oil major is targeting one of the region's least-explored ultra-deepwater frontiers with a proven exploration model that has delivered transformative results in neighbouring Guyana. 'ExxonMobil aims to replicate the exploration approach that identified over 13bn barrels of recoverable resources in Guyana's Stabroek Block,' Rystad Energy stated in its analysis.

The 7,765 km2 concession, located in the Eastern Tobago Basin at water depths exceeding 2,000 metres, consolidates six previously unawarded acreage areas. The production sharing contract marks Exxon's return to Trinidad after a 22-year absence, offering potential relief for an economy strained by years of declining gas production.

Trinidad and Tobago's energy revival efforts are advancing on multiple fronts under Prime Minister Kamla Persad-Bissessar, who has positioned herself as the United States’ strongest Caribbean ally since returning to office in May. Her pro-US alignment includes authorising American military operations in Trinidad's waters and supporting actions against drug-trafficking vessels.

This strategic positioning has yielded tangible results. In October, the US granted Trinidad authorisation to reactivate the Dragon and Manakin-Cocuina gas fields straddling the Venezuelan border, reversing Washington's April license revocation. The authorisation, structured in three stages and mandating 'the inclusion of US companies in the development,' provides access to the Manakin-Cocuina field's more than 28bn cubic metres of proven reserves.

Meanwhile, ExxonMobil's regional operations have continued to expand, particularly in neighbouring Guyana. The company's Yellowtail development off Guyana’s coast has achieved rapid production growth since its August startup, averaging 134,000 barrels per day (bpd) in September—up from 75,000 bpd in August. All four of the Yellowtail project’s shipments in September were bound for European destinations, with two cargoes shipped to the United Kingdom, while Spain and Italy each received one shipment.

ExxonMobil’s renewed interest in Trinidad and Tobago places the Caribbean country at a critical juncture. Success in attracting ExxonMobil's substantial investment could revitalise the nation's energy-dependent economy and restore its position as a regional gas hub.

While Persad-Bissessar's close alignment with Washington has strained relations with Venezuela, it appears that this geopolitical realignment could benefit the country in the long run, particularly if US majors, including ExxonMobil, direct their resources at building Trinidad and Tobago’s oil and gas sector.

© 2025 bne IntelliNews, source Magazine