ExxonMobil is set to potentially invest as much as $21.7bn (147.35bn) in Trinidad and Tobago, contingent upon the successful discovery of reserves in a newly awarded deep-water exploration area, reported Reuters, citing Trinidad's Energy Minister Roodal Moonilal.

Moonilal announced the significant investment possibility during a contract signing event in Port of Spain.

The contract, which marks ExxonMobil's return to Trinidad after a two-decade hiatus, grants the energy giant access to an exploration area equivalent to seven blocks, located north-west of its successful Stabroek block offshore Guyana.

“What we are awarding today is larger than the surface area of the country,” Moonilal stated, emphasising the scale of the exploration zone.

ExxonMobil global exploration vice-president John Ardill, who spoke at the signing ceremony, highlighted the swift negotiation of the deal with Trinidad's Government.

Ardill expressed the company’s intention to apply its Caribbean geological expertise and replicate its Guyanese success in Trinidad.

The initial exploration phase, involving 3D seismic mapping and up to two exploration wells, will require an investment of $42m.

The first well could be drilled following seismic work, set to commence within six months.

An ExxonMobil spokesperson confirmed the company's role as the operator of the block, holding a 100% interest.

The spokesperson also referenced the consortium led by ExxonMobil that has verified more than 11 billion barrels of recoverable oil and gas in the waters neighbouring Guyana.

Ardill described the Trinidad exploration as “still frontier” but with “great potential” in the ultra-deep-water region.

Trinidad has previously seen deep-water exploration success with consortia including BHP, Woodside, bp and Shell, with some discoveries moving towards commercial development.

Should ExxonMobil confirm reserves, the company could potentially accelerate production in Trinidad, leveraging existing oil and gas infrastructure, which could expedite the process compared to its experience in Guyana.

Ardill indicated plans to utilise equipment and resources across both Guyana and Trinidad and Tobago to hasten exploration efforts.

In support of further energy sector investment, Trinidad's Prime Minister, Kamla Persad, was quoted as saying: "Trinidad will not wait for the end of any energy era.

“Our principle is simple: investment goes where it is welcomed and stays where it is well treated.”