Information on the target
Occidental Petroleum Corporation (Oxy) is a prominent U.S. energy company that has recently made a strategic move into Trinidad and Tobago's energy sector. The company has acquired a 10% participating interest in Block TTUD-1, an ultra-deepwater exploration block that is primarily operated by ExxonMobil, which retains a 90% stake. This acquisition marks a significant entry for Oxy into a region that is increasingly attracting international energy firms.
The acquisition follows ExxonMobil's re-entry into Trinidad and Tobago in August 2025, when it secured a Production Sharing Contract (PSC) for the same exploration block. The government of Trinidad and Tobago has facilitated this process by accelerating permitting, allowing ExxonMobil to initiate one of the largest seismic programs in the country, which is now nearing completion.
Industry overview in the target’s specific country
Trinidad and Tobago has long been recognized as a key player in the Caribbean energy sector, particularly in natural gas and oil production. The country has a well-established infrastructure for energy exploration and production, making it an attractive destination for foreign investment. The recent developments in the energy sector, including the return of ExxonMobil and the entry of Occidental Petroleum, signal a renewed interest in the region's potential for significant hydrocarbon reserves.
The government has been proactive in creating a favorable environment for energy investments, as evidenced by the swift permitting processes and the establishment of production sharing contracts. This has not only attracted major players like ExxonMobil but has also encouraged other companies to explore opportunities within Trinidad and Tobago's energy landscape.
Furthermore, the National Gas Company (NGC) has reported substantial profits, exceeding $3.2 billion, which underscores the financial viability of the sector. The restoration of dividends to citizens through Trinidad and Tobago NGL Limited (TTNGL) reflects the positive economic impact of the energy sector on the local population. Additionally, the government has successfully settled all downstream gas supply agreements for 2026, ensuring stability and predictability in the market.
As work continues on various projects, including Manakin-Cocuina, Manatee, Onyx, and Dragon, Trinidad and Tobago is reinforcing its position as a regional hub for liquefied natural gas (L…