ExxonMobil oil company re-entering Trinidad

The Trinidad &Tobago government says it will sign a multibillion-dollar contract with the American oil and gas giant, ExxonMobil, which is expected to resume business operations in the twin-island state after a 22-year hiatus.

ExxonMobil exited the country in 2003. Its return signals that Trinidad is open for business, said Prime Minister Kamla Persad Bissessar.

“For the first time since 2003 ...ExxonMobil is coming back to Trinidad & Tobago. We agreed on a prudent phase plan to explore a newly defined ultra-deep water area, known as USD1, seven blocks of the east coast of Trinidad, 2, 000 to 3,000 metres deep,” said Persad Bissessar at the Monday night forum of the ruling United National Congress.

The USDI sits northwest of Guyana’s Stabroek block.

“In plain terms, this represents a significant new frontier that can supply our energy and petrochemical plants, create good jobs, embrace and enhance our foreign exchange reserves,” the PM remarked.

The signing of a new contract was due to take place on Tuesday, exactly 100 days since Persad Bissessar’s coalition UNC administration won the April 28 general elections.

“My government will host the largest publicly traded oil and gas company in the world – right here in TNT – and we will sign a multi-billion dollar agreement for ultra-deep sea drilling in our territorial waters. That area has remained unexplored forever and now they carry enormous potential for capturing petro carbon resources,” she said.

ExxonMobil is expected to invest US$42.5 million in the first phase of the project “and in the event of success, the project development costs could range from US$16.4 billion to US$21.7 billion,” the PM said.

Persad Bissessar added that the benefits arising from this project “will be enormous as deepwater exploration has potential to deliver large volumes at high margins, more than upsetting the handicap of tying up a lot of technical capital and technical challenges”.

“So I tell you ... from a resource owner’s perspective the potential revenue contribution would be substantial and likewise the in-country spend will benefit our local economy,” she said.

“What this means for you is very simple: in the coming months, in the coming years, more decent jobs from exploration to services ... more reliable fuel, power, supporting lower costs for transport, for businesses and households, stronger foreign exchange to stabilise prices and support all the essentials that we need to import,” told the forum.

Meanwhile, Persad Bissessar also indicated that her administration has a “real plan” for the oil refinery that was shuttered by the previous administration because of mounting debt. She asserted that reopening the facility would protect national fuel security “without wasting money”.

The PM also noted that she was briefed recently on the potential impact of the United States’ tariff policy on Trinidad, and was struck by the table outlining the balance of trade between the two countries.

“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 ... we used to produce that. Now we sell our oil and then we buy back the refined products for US dollars. That making any sense to you?” she remarked.

“We have to get that refinery going,” she said, having noted, for example that Trinidad was importing US$9 billion worth of kerosene, which it once produced domestically.

“We had jobs, foreign exchange coming out of that refinery,” said Persad Bissessar, while announcing that she had convened a team to get the refinery working again in the shortest possible time.

CMC