Occidental Takes 10% Stake in Exxon's Deepwater Block Offshore Trinidad
Occidental Takes 10% Stake in Exxon's Deepwater Block Offshore Trinidad
Occidental Petroleum (NYSE:OXY) is acquiring a 10% stake in Exxon Mobil's (NYSE:XOM) deepwater exploration block UD(1) offshore Trinidad and Tobago, according to sources familiar with the matter. The value of the deal was not disclosed.
Block Potential and Geological Similarities
The block borders Guyana's Stabroek Block, where Exxon and its partners have made over 30 discoveries. Exxon's Vice President of Global Exploration John Ardill said the block could hold potential comparable to Stabroek or deepwater assets offshore Angola.
Seismic Surveys and Exploration Timeline
Exxon is conducting seismic surveys in the block, with data acquisition expected to be completed by end of July. Interpretation of the data could be done by end of 2026. A decision on drilling an exploration well will follow seismic results.
Importance for Trinidad and Tobago
Trinidad and Tobago, facing declining production from mature fields, is seeking new upstream opportunities. This deal is critical to sustain production and support its liquefied natural gas sector.
Impacted Symbols
Symbols affected by this headline and their sentiment signals
Occidental Petroleum Corporation
Occidental diversifies its growth portfolio by acquiring a 10% stake in a high-potential deepwater block offshore Trinidad, capturing future production upside.
Exxon Mobil Corporation
Exxon retains 90% ownership and control, and the proceeds from the stake sale may help fund seismic surveys, but the deal size is relatively small for Exxon.
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