00:00ExxonMobil's Vice President of Global Exploration, John Ardell, is very impressed with the pace
00:07of the signing off on the production-sharing contract with TNT.
00:12This event sets a new benchmark in global PSC signings.
00:16He calls it a very important day for the building of a strong partnership to unlock new resources.
00:22We have the benefit of the map on the wall, which shows an area off to the Far East which doesn't have any red or green in it.
00:34And so our shared job is to come back with that map in a couple of years and make sure there's some very large green blobs that are on their path to development.
00:43Ardell references Exxon's work in Guyana and states if that model is replicated with the same governmental support as has been had in the South American country,
00:54that could mean economic growth and jobs for the people of TNT.
01:00It's a very compelling location for oil and gas investments.
01:06And many in this room have worked very hard to create that attractive investment environment.
01:11We have experienced that firsthand in our dealings over the last six months.
01:17That deep-rooted history in oil and gas that brings a wealth of expertise and capabilities across the entire value chain,
01:26that should allow us to move even faster than Guyana.
01:31The mature dynamic industry, robust infrastructure, deep water ports,
01:36these are all things that we had to build over the last few years, last 10 years in Guyana.
01:44But Ardell could not stop crediting the government for the pace of negotiations.
01:49The PSC negotiations, as I mentioned, moved at record pace.
01:53We do this all over the world.
01:56Last week I was in London, signed an agreement on Libya on Monday,
02:02DC, signed Azerbaijan on Thursday, and we'll head to Algeria tonight.
02:08And this is among the fastest pace of any of those examples.
02:15The company intends to use their cutting-edge 3D seismic modeling here in TNT's deep waters.
02:22We stand ready to commence 3D seismic acquisition in the next six months.
02:29To collect the data, we'll need to identify the prospect that then will mature quickly.
02:35And with that prospect, we'll drill a well to test that.
02:39Energy Minister Dr. Rudal Munilal said,
02:42although bid rounds are the preferred method of award, direct negotiations are allowed.
02:47In December 2024, the ministry received approval to engage in direct negotiations with ExxonMobil
02:55for an award of a production-sharing contract for the blocks in question.
03:01Intense negotiations followed, which resulted in the agreement on terms for the production-sharing contract.
03:09They were mutually beneficial to Trinidad and Tobago, as well as ExxonMobil.
03:13Dr. Munilal says ultra-deep waters are the country's best prospect for discovery of hydrocarbons,
03:20with an estimated 5 billion barrels of oil remaining undiscovered.
03:24ExxonMobil has committed to undertake a minimum exploration work program for this block,
03:30which includes the acquisition of 5,500 square kilometers of 3D seismic
03:36during the first phase of the exploration period.
03:39The acquisition of seismic survey is scheduled to commence within 12 months of the effective date of our signing.
03:48Here's what the financial agreement with Exxon entails.
03:52Administrative charge, minimum payment, training contributions, research and development contributions,
04:00technical assistance, equipment bonus, and scholarships.
04:03The value of the financial obligations amount to 12.8 million US dollars, or 87 million TT dollars,
04:13in phase one of the project.
04:15A successful development within this block could result in an investment of up to US$21.7 billion.
04:24Exxon is expected to incur US$42.5 million in the first phase and up to US$21.7 billion in full.
04:35Urvashi Tawari, Rup Narayan, TV6 News.
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