1 week ago
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The Vice President of Global Exploration at ExxonMobil Upstream Company, John Ardill, Tuesday said Trinidad and Tobago could replicate the success of Guyana as the two countries continue to explore their gas and energy sector.
Speaking at the signing ceremony for the multi-million US dollar agreement between the Trinidad and Tobago government and the US oil and energy giant for the production sharing contract for Block Trinidad and Tobago Ultra Deep 1 (TTUD-1), Ardill said ExxonMobil’s experience in the region, gives great hope for Trinidad and Tobago.
“Guyana is the fastest growing economy in the world today. It brings societal developments and if you visit Georgetown, you will see their infrastructural programmes and very importantly jobs at the local economy.
“With this experience ExxonMobil has really learnt a lot about the Caribbean offshore geology and that’s what positions us to move very quickly here in Trinidad and Tobago. Our plan and my commitment to you is to bring that experience to benefit the people of Trinidad and Tobago and we see great potential to replicate the Guyana success here,” he added.
Ardill said Trinidad and Tobago s poised for accelerated growth, saying “it is a very compelling location for oil and gas investments and many in this room have worked very hard to create that attractive investment environment”.
He said the oil company had experienced that situation first hand in its dealings here over the last six months and “that deep rooted history in oil and gas brings a wealth of expertise and capabilities across the entire value chain (and) that should allow us to move even faster than Guyana”.
He said the mature dynamic industry, robust infrastructure, deepwater ports were things ExxonMobil had to build “over the last 10 years in Guyana”.
But Ardill is expressing cautious optimism going forward, saying “I have a little disclaimer in being a geologist in charge of exploration at ExxonMobil.
“No guarantee of success, but I would tell you many of the largest discoveries and development in the world are occurring in deep water environments, similar to what you have here, and I think you have got an excellent partner.
“So together, this is the right time. We are going to bring ExxonMobil leading technology capability directly from Guyana, we will leverage our presence, rigs, development concepts and pace and if you benchmark Guyana it is by far the leading deep-water development in the world in terms of both scale and pace. So are well positioned together”.
In his address, the ExxonMobil senior executive praised Trinidad and Tobago for the record pace in reaching the agreement.
He said the negotiations moved at “record pace” and that while ExxonMobil does this all over the world “this is among the fastest pace of any of those examples.
“I am just amazed you are doing that at the same time you are executing the largest oil and gas licencing round in Trinidad and Tobago’s history”.
Prime Minister Kamla Persad Bissessar said Trinidad and Tobago will not wait for the end of any energy age and will lead the next chapter by innovating, investing, and expanding into new frontiers.
“Today’s signing underscores my government’s commitment to strengthening national energy security and to unlocking the full value of our hydrocarbon resources through disciplined policy, competitive terms, and trusted partnerships,” she told the ceremony, adding that energy has long been the bedrock of the local economy.
She told the ceremony that at its peak in the early 2000s, the energy sector accounted for nearly 45 per cent of the country’s gross domestic product GDP, over 40 per cent of total government revenue and around 80 percent of the country’s foreign-exchange earnings.
“Over the last decade, however, sustained declines in oil and gas production, compounded by lower commodity prices, reduced the sector’s contribution to the domestic economy and eroded public revenues.”
She said that on returning to government on April 28, her administration treated this downturn as a clarion call: to restore momentum, renew confidence, and re-establish Trinidad and Tobago as the energy hub of the region.
“Our renewal agenda is clear. We are implementing strategic policies to optimise our petroleum resources so that the people of Trinidad and Tobago, the rightful owners, receive equitable returns, while investors earn fair and predictable profits. “
She said that the foundation is a regenerative energy economy, resilience now, sustainability over the long term.
“To compete and win, we will, maintain an attractive fiscal framework aligned to risk and reward; enhance operational efficiency across exploration and production, reduce production costs by enabling technology and logistics and streamline regulatory oversight without compromising standards.”
Persad Bissessar said that the ease-of-doing-business programme in energy will remove administrative bottlenecks, modernise licensing and approvals, clarify legal frameworks and improve transparency at every stage of the value chain.
“With this approach, I fully expect today’s ceremony to be the first of many,” she said, adding that the agreement with ExxonMobil is a continuation of programmes her 2010-15 administration had put in place.
She said Block Trinidad and Tobago Ultra Deep 1 stands on a solid foundation and that the basin knowledge meets ExxonMobil’s ultra-deepwater capability.
“Today, we also send a clear message: Trinidad and Tobago’s energy sector is open for business. Investor confidence from global majors remains strong, as evidenced by ExxonMobil’s participation.
“ExxonMobil ranks among the world’s leading oil and gas companies by revenue, market capitalisation, and production capacity. We welcome ExxonMobil as a partner with the Government and people of Trinidad and Tobago in advancing our upstream sector,” she said.
She added: “Exxon’s technology leadership in ultra-deepwater environments is eagerly anticipated as we position our nation to be part of the region’s deepwater revival. The data acquisition associated with this Production Sharing Contract (PSC) will enrich our national subsurface database and significantly deepen our understanding of our petroleum potential.”
Prime Minister Persad Bissessar said that it is estimated that ExxonMobil will incur expenditure of an estimated US$42.5 million in the mandatory first phase of the project and with success, the projected development cost could be between US$16.4 billion and US $21.7 billion.
“I reiterate that this agreement sets a strong precedent for the next phase of our energy future. While global headwinds may arise beyond our control, the path ahead is brighter.
“We are confident in the success of this major project, and we wish ExxonMobil every success as we partner for our mutual gain, and for the long-term prosperity of the Republic of Trinidad and Tobago.” —(CMC)
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