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Moonilal was speaking at an event in Port of Spain where a production-sharing contract was signed with Exxon, marking its return to the country after 20 years.
Reuters reported last week that government had agreed to grant Exxon access to an area equivalent to seven blocks and located northwest of its prolific Stabroek block offshore Guyana.
“What we are awarding today is larger than the surface area of the country,” Moonilal said.
Exxon and Trinidad’s government negotiated the deal in “record time,” Exxon’s Vice President of global exploration John Ardill said at the signing ceremony, adding that the company wants to use its knowledge about the Caribbean geology and replicate its success in Guyana.
Exxon’s initial exploration plan will need a $42 million investment for 3D seismic and up to two exploration wells, Trinidad’s officials said. The first well could be drilled after completing seismic, to begin in six months, Ardill added.
An Exxon spokesperson said the company is the operator of the block and holds 100% interest.
An Exxon-led consortium has confirmed more than 11 billion barrels of recoverable oil and gas at the neighboring waters of Guyana.
“While this is still frontier exploration, it has great potential in this ultra deepwater area,” Ardill said, referring to Trinidad.
Trinidad has had some success in deepwater exploration by consortia including companies BHP, Woodside, BP and Shell. Some of the discoveries are advancing to commercial developments, the minister said.
If reserves are confirmed by Exxon, it could move even faster than it did in Guyana to begin output because Trinidad has oil and gas infrastructure in place.
Exxon plans to use its equipment and resources between Guyana and Trinidad and Tobago to expedite exploration, according to Ardill.
Trinidad’s Prime Minister Kamla Persad has promised that her country will review fiscal terms to further attract investment for its energy sector.
“Trinidad will not wait for the end of any energy era,” she said. “Our principle is simple: investment goes where it is welcomed and stays where it is well treated.”
(Reporting by Curtis Williams and Marianna Parraga; Editing by Mark Porter and Marguerita Choy)
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