The Energy Chamber welcomes the signing of the production sharing contract (PSC) for the new TTUD-1 Block between ExxonMobil and the Government of Trinidad and Tobago.
The consolidation of blocks TTDA 17, 18, 19, 20, 21, 22, and 23 into one block (UD-1) creates a unique opportunity. Deepwater and ultra-deepwater exploration are inherently more risky and more expensive than onshore or shallow-water projects. Consolidation of the blocks removes risk in both exploration and development of the block, as well as simplifies interaction with the Ministry of Energy and Energy Industries.
The Energy Chamber is excited to hear of Exxon’s intention to shoot 5,500 km² of 3D seismic in this block in the next six to twelve months and the commitment to drill two exploration wells.
The Energy Chamber also applauds the Ministry of Energy and Energy for the successful award of the PSC and the pace at which it was completed. We look forward to consideration of non-traditional ways to engage the private sector and attract operators. The Chamber fully endorses the Prime Minister’s call for the creation of an attractive fiscal framework, the removal of administrative bottlenecks and for the modernization of the licensing and approval process and improving transparency in the process.
John Ardill, Vice President of Global Exploration, ExxonMobil, spoke positively about the opportunity in Trinidad and Tobago, highlighting the attractive investment climate, robust infrastructure, deepwater ports, and supply chain. These all point to T&T’s competitiveness in oil and gas.
The more projects that become viable in the energy sector, the more opportunities there will be for local content development and for contractors.