Prime Minister Kamla Persad-Bissessar signed a multi-million-dollar Production Sharing Contract with ExxonMobil on Tuesday for seven ultra-deepwater exploration blocks off the east coast of Trinidad and Tobago.
The signing of the Production Sharing Contract with ExxonMobil for Block TTUD1 sees the energy giant returning to Trinidad and Tobago after an absence of 22 years.
Prime Minister Persad-Bissessar described the event as a momentous development in Trinidad and Tobago’s energy sector.
“It is estimated that ExxonMobil will incur expenditure of an estimated US$42.5 million in the mandatory first phase of the project. That is no small amount of money and it’s in hard currency, US dollars. With success, the projected development cost could be between US$16.4 billion and US$21.7 billion.”
Mrs. Persad-Bissessar declared Trinidad and Tobago’s energy sector open for business as investor confidence from global majors remains strong.
To ensure that there is strong momentum in exploration across all domains including deep water, shallow water, and onshore, the Prime Minister has given a mandate to the Ministry of Energy and Energy Industries:
“Accelerate the responsible exploration of unexplored land and marine acreages, continuously improve acreage-award processes, and undertake a comprehensive review of the oil and gas taxation regime to ensure T&T remains an internationally competitive hydrocarbon province.”
The Prime Minister said the government’s principle is simple: investment goes where it is welcomed and stays where it is well treated. In that vein, she said the government will maintain an attractive fiscal framework, enhance operational efficiency, reduce production costs, and streamline regulatory oversight.
“Remove the administrative bottlenecks, a piece of paper from one desk to another takes two months. That can’t be real. Remove bottlenecks, modernise licensing and approvals. Again AG and the team, legally we need to look at that. Clarify legal frameworks, improve transparency at every stage of the value chain.”
Block Trinidad and Tobago Ultra Deep 1 is located off Trinidad and Tobago’s east coast.