Occidental Petroleum (OXY.US) is nearing completion of a deal to acquire a 10% interest in a major deepwater exploration block offshore Trinidad and Tobago from Exxon Mobil (XOM.US), according to sources familiar with the matter. Exxon Mobil was previously the sole owner of the block, known as UD(1), which is located in waters ranging from 2,000 to 3,000 meters deep and was first officially secured by the energy company in August 2025. The financial terms of the transaction were not disclosed.
John Ardill, Exxon Mobil's Global Vice President of Exploration, stated at the Offshore Technology Conference in Houston this month that the company is conducting seismic surveys on the block, with data acquisition expected to be completed by the end of July. He added that data interpretation could be finished by the end of 2026. The Trinidad block is adjacent to the prolific Stabroek block offshore Guyana, where Exxon Mobil and its partners have made over 30 discoveries, transforming Guyana into one of the world's fastest-growing oil producers. Ardill has previously indicated that the Trinidad block may possess potential comparable to the Stabroek block or deepwater assets offshore Angola.
The geological similarities between the two regions have fueled speculation that Trinidad's deepwater area could hold significant untapped resources, although exploration risks remain high at this early stage. Trinidad and Tobago's oil and gas output has been declining in recent years due to the depletion of mature fields, prompting the country to seek new upstream development opportunities to sustain production and support its liquefied natural gas (LNG) sector. The country's Ministry of Energy did not immediately respond to requests for comment, nor did Exxon Mobil or Occidental regarding the stake acquisition.
According to an internal statement from the ministry, Exxon Mobil's Country Manager for Trinidad, Paul Riley, Business Development Manager Gboyega Ayeni, and Occidental's Vice President of International Exploration, Pedro Romero, met last week with Trinidad and Tobago's Prime Minister Kamla Persad-Bissessar and Energy Minister Roodal Moonilal. Exxon Mobil is expected to decide whether to drill an exploration well after reviewing the seismic results, which could provide the first concrete indication of the block's commercial potential.
Amid a backdrop of high oil prices, Occidental's move to bet on Exxon Mobil's Caribbean deepwater portfolio underscores a strategic shift. Major global oil and gas companies like Exxon Mobil, Occidental, and Chevron are not abandoning long-cycle upstream resource reserves due to the energy transition; instead, they are doubling down on supply security, LNG demand, and high-return deepwater assets. If UD(1) proves successful in the future, it could extend Exxon Mobil's deepwater expansion logic, similar to its success in Guyana's Stabroek block, and provide Occidental with a non-shale, long-life, international resource growth platform.
Against the backdrop of elevated oil prices and rising supply risks in the Middle East, Occidental's acquisition of a 10% stake in Exxon Mobil's Trinidad UD(1) deepwater block signifies a strategic approach to gaining exposure to high-potential frontier exploration opportunities through minority participation. The UD(1) block, situated at depths of 2,000 to 3,000 meters, borders Exxon Mobil's Stabroek block in Guyana, which has yielded over 30 discoveries. Exxon Mobil executives have suggested the block's potential could be analogous to Stabroek or deepwater assets offshore Angola.
For Occidental, this is not a short-term production boost transaction but an option to gain a low-percentage entry into what could be the "next giant discovery" in the Caribbean deepwater, especially as energy security premiums return amid high oil prices. For Exxon Mobil, bringing Occidental on board serves two purposes: first, to share the risks and costs of early-stage seismic surveys, future exploration drilling, and potential development while retaining operational control; and second, to add another U.S. upstream company's endorsement to UD(1), enhancing the project's credibility and future capital market narrative. Exxon Mobil is currently conducting seismic exploration on the block, with data acquisition slated for completion by the end of July and interpretation potentially extending to the end of 2026. The subsequent decision on whether to drill an exploration well will be the first substantive test of the block's commercial viability.
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