ExxonMobil Secures Vast Deepwater Block in Trinidad & Tobago

Exxon Mobil Corporation XOM has strengthened its Caribbean presence with a major deepwater acquisition in Trinidad and Tobago, securing a production sharing contract (PSC) for a frontier block that surpasses the island nation in size, according to media reports.

XOM Gains Full Control of UD-1 Block

ExxonMobil signed the PSC with the Government of Trinidad & Tobago for the Ultra Deepwater 1 (UD-1) block, which spans about 7,100 square kilometers — an area larger than the country itself. The block, awarded exclusively to ExxonMobil with a 100% working interest, consolidates seven separate blocks (TTDA 17 through 23) that were offered during the February 2025 Deep Water Competitive Bidding Round.

John Ardill, ExxonMobil’s vice president, described the deal as a milestone for the company’s regional strategy, emphasizing that it strengthens XOM's ability to deploy its industry expertise to tap the potential of the expansive acreage in Trinidad and Tobago.

XOM’s Deepwater Expansion in the Caribbean

The award marks ExxonMobil’s return to Trinidadian waters, where it last signed a PSC in 1998 before drilling two wells in blocks 25(b) and 26 in 2002. This new venture underscores the company’s intent to leverage its advanced deepwater drilling technology and subsurface expertise in an unexplored frontier positioned northwest of Guyana’s prolific Stabroek block.

ExxonMobil has been leading oil development in Guyana, where production continues to scale rapidly. Just last week, the company’s Yellowtail project — the fourth development in Stabroek — began producing oil through the One Guyana floating production storage and offloading (FPSO) unit. Yellowtail, featuring six drill centers and up to 26 production and 25 injection wells, is expected to yield an initial average of 250,000 barrels of oil per day, making it the largest oil project in Guyana to date.

XOM Strengthens Regional Energy Position

With the UD-1 acquisition, ExxonMobil has reinforced its deepwater presence across the Caribbean, positioning itself to unlock new reserves while extending its influence in the Western Hemisphere. The deal not only diversifies Trinidad’s energy portfolio but also aligns with ExxonMobil’s long-term strategy of tapping large-scale offshore opportunities.

XOM’s Zacks Rank and Key Picks

XOM currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation AM, Flotek Industries, Inc. FTK and Enbridge Inc. ENB. While both Antero Midstream and Flotek Industries carry a Zacks Rank #2 (Buy), Enbridge sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%.

Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. In the oil and gas sector, Flotek serves major and independent energy producers and oilfield service companies, both domestic and international.

Flotek’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 65.2%. The Zacks Consensus Estimate for FTK’s 2025 earnings indicates 94% year-over-year growth.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts that act as a protection against big oil price swings or changes in shipment. 

ENB’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 5.61%.

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This article originally published on Zacks Investment Research (zacks.com).

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