Exxon signs deal to explore Trinidad deepwater blocks, could see $21.7B investment

[Exxon Posts 38 Percent Decline In Quarterly Profit]
Spencer Platt/Getty Images News

Exxon Mobil (NYSE:XOM [https://seekingalpha.com/symbol/XOM]) said Tuesday it signed a deal to explore a vast deepwater area [https://seekingalpha.com/pr/20198822-exxonmobil-signs-deal-to-explore-for-oil-and-gas-near-trinidad-despite-criticism] offshore Trinidad and Tobago for oil and gas, and the country's energy minister said the company could spend as much as $21.7B [https://www.reuters.com/business/energy/trinidad-awards-deepwater-blocks-exxon-could-see-217-billion-investment-minister-2025-08-12/] if it finds sufficient reserves.

The search will take place off Trinidad's east coast in a region that spans more than 2,700 sq miles and is more than 6,500 ft deep, according to government officials.

There are "no guarantees of success," Exxon's (NYSE:XOM [https://seekingalpha.com/symbol/XOM]) VP of global exploration John Ardill told an audience in Trinidad, "but many of the largest discoveries and developments in the world are occurring in deepwater environments similar" to offshore Trinidad. "We see great potential to replicate the Guyana success here."

Exxon (XOM [https://seekingalpha.com/symbol/XOM]) will start a geophysical survey in the next six months to collect data needed to identify prospects for oil and gas, then will begin drilling for testing, Ardill said.

The company plans to use its equipment and resources between Guyana and Trinidad and Tobago to expedite exploration, Ardill also said.

Exxon (XOM [https://seekingalpha.com/symbol/XOM]) is the operator of the block and holds 100% interest.

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