Occidental Petroleum has agreed to acquire a 10% stake in the UD(1) offshore exploration block operated by Exxon Mobil off the coast of Trinidad and Tobago, according to sources close to the deal. The transaction strengthens both companies’ presence in one of the Caribbean’s most promising deepwater exploration areas.
Block UD(1), located at depths of between 2,000 and 3,000 meters, was fully controlled by Exxon since its award in August 2025. Although the value of the transaction was not disclosed, the move confirms the growing interest of major oil companies in expanding their exposure to offshore assets near Guyana.
Exxon is moving forward with seismic studies in the block
Exxon is currently conducting seismic surveys to assess the geological potential of the area. The company expects to complete data acquisition by the end of July, while the technical interpretation could be completed during 2026.
John Ardill, Exxon’s vice president of global exploration, recently noted that the block could have characteristics comparable to Stabroek in Guyana and some offshore developments in Angola. This assessment has heightened industry interest in Trinidad’s deepwater oil potential.
Likewise, the geological proximity to the prolific Stabroek Block has raised new expectations for commercial discoveries in the region. Exxon and its partners have made more than 30 discoveries in Guyana over the past decade, transforming the country into one of the fastest-growing oil producers globally.
Trinidad seeks to revitalize its energy production
The operation comes at a crucial time for Trinidad and Tobago, as the country has experienced a gradual reduction in its oil and gas production due to the depletion of mature fields, a situation that has pressured authorities to promote new offshore exploration campaigns.
The government maintains a strong interest in ensuring the supply of natural gas to its LNG industry, which is considered strategic for the national economy. In this context, deepwater projects represent an opportunity to incorporate new reserves and extend the productive life of the local energy sector.
Last week, representatives from Exxon and Occidental held meetings with Prime Minister Kamla Persad-Bissessar and Energy Minister Roodal Moonilal to discuss investment opportunities and energy development in the country.
The next step will be to define an exploratory drilling
Once the seismic analysis is complete, Exxon will have to decide whether to proceed with drilling an exploratory well. This stage would determine if the block has commercially viable resources.
Although the geological potential is generating optimism among industry analysts, ultra-deepwater operations continue to involve high technical and financial risks during the early stages of exploration.
Source: Reuters
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