Occidental buys 10% stake in Exxon Trinidad deepwater block

Occidental Petroleum is buying a 10% stake in Exxon Mobil’s deepwater exploration block offshore Trinidad and Tobago, a small position with outsized strategic value in one of the Caribbean’s deepest and most closely watched oil frontiers.

The block, known as UD(1) or TTUD-1, sits in water depths of about 2,000 to 3,000 metres and had previously been fully controlled by Exxon. Exxon first acquired it in August 2025, then moved into seismic work aimed at determining whether the acreage can hold another major offshore discovery. Data acquisition was expected to finish by the end of July 2026, with interpretation running through the end of the year.

For Occidental, the purchase is less about headlines than access. A minority stake can still bring a seat at the table, exposure to geological data and a role in development decisions if the block proves commercial. For Exxon, bringing in a partner helps spread the cost and risk of drilling in ultra-deep water, where wells are expensive and dry holes can erase years of work. In an industry trying to balance shareholder returns, reserve replacement and capital discipline, even a 10% entry into a frontier block can signal where major oil companies still see room for profitable growth.

The deal also underscores Trinidad and Tobago’s importance as an oil and gas jurisdiction despite years of production decline. The country’s gas output peaked at about 4 Bcf/d in 2010, and falling production has weighed on LNG, ammonia and methanol. Yet hydrocarbons still account for roughly one-quarter of GDP, nearly 80% of exports and more than one-quarter of government revenues in recent years, making new offshore acreage politically and economically significant.

The block borders Guyana’s Stabroek Block, where Exxon and its partners have made more than 30 discoveries, and that proximity has helped fuel comparisons between Trinidad’s ultra-deepwater geology and other frontier basins. John Ardill, Exxon’s vice president of global exploration, has said the area could have potential comparable to Stabroek or to deepwater assets offshore Angola.

The timing of Occidental’s entry follows direct government engagement. On 22 May 2026, Prime Minister Kamla Persad-Bissessar and Energy Minister Roodal Moonilal met with Exxon Trinidad and Tobago Deepwater president Paul Riley, Occidental vice president of international exploration Pedro Romero and Exxon business development manager Gboyega Ayeni. The Ministry of Energy and Energy Industries has also been pushing local-content and development planning around TTUD-1, a sign that Port of Spain sees the block as part of a broader push to revive offshore output.