From the miracle of Guyana to the depths of Trinidad: Occidental Petroleum Corporation (OXY.US) enters the deepwater territory of Exxon Mobil Corporation amid high oil prices.

According to reports from sources cited by the media, Occidental Petroleum Corporation (OXY.US) is about to complete the acquisition of a 10% stake in the offshore exploration block near Trinidad and Tobago belonging to another American oil and gas giant, Exxon Mobil Corporation (XOM.US). Exxon Mobil Corporation was previously the sole owner of this large offshore block known as UD(1); the block is located in an area with water depths of 2,000 to 3,000 meters and was officially acquired by oil and gas companies in August 2025. However, the sources emphasized that they did not know the value of this transaction. Exxon Mobil Corporation's Vice President of Global Exploration, John Ardill, stated at the Offshore Technology Conference held in Houston earlier this month that this U.S. Energy Corp. giant is conducting seismic exploration in the block, with data collection expected to be completed by the end of July. He added that data interpretation may be completed by the end of 2026. This Trinidadian mining rights area is adjacent to the Stabroek super oil and gas block, where Exxon Mobil Corporation and its long-term partners have made more than 30 oil and gas discoveries, transforming Guyana into one of the fastest-growing oil-producing countries in the world. Ardill had previously told the media that the oil and gas block may have the potential to rival assets similar to Stabroek or Angola's deepwater assets. The geological similarities between these two areas have sparked strong speculation that the deepwater area near Trinidad could contain a significant amount of untapped resources, although exploration risks remain high at this early stage. The oil and gas production of this Caribbean country has shown a decline in recent years due to mature oil and gas fields depleting, and they have been seeking new upstream resource development opportunities in order to maintain production and support their liquefied natural gas industry. The Ministry of Energy of Trinidad and Tobago did not immediately respond to media requests for comments. Exxon Mobil Corporation and Occidental Petroleum Corporation also did not respond to requests for comments on this equity acquisition. According to an internal statement from the country's Ministry of Energy, last week, Exxon Mobil Corporation's Trinidad Country Manager Paul Riley, Business Development Manager Gboyega Ayeni, and Occidental Petroleum Corporation's Vice President of International Exploration, Pedro Romero, met with Trinidad and Tobago Prime Minister Kamla Persad-Bissessar and Energy Minister Roodal Moonilal. It is expected that Exxon Mobil Corporation will decide whether to drill a substantial exploration well after reviewing the seismic exploration results, which could provide the first concrete signal of the commercial potential of this block. Against the backdrop of high oil prices, Occidental Petroleum Corporation is choosing to bet on the deepwater Caribbean layout led by Exxon Mobil Corporation. Global oil and gas companies such as Exxon Mobil Corporation, Occidental Petroleum Corporation, and Chevron Corporation have not abandoned long-cycle upstream reserves due to energy transition, but have instead ramped up investments in supply security, LNG demand, and high-return deepwater assets. If UD(1) proves successful in the future, it could continue Exxon Mobil Corporation's expansion logic in deepwater assets similar to Stabroek in Guyana, and also provide Occidental Petroleum Corporation with a non-shale, long-life, and internationalized resource growth platform. Against the backdrop of rising oil prices and risks in Middle East oil and gas supply, Occidental Petroleum Corporation's acquisition of a 10% stake in Exxon Mobil Corporation's Trinidad UD(1) deepwater block means that Occidental Petroleum Corporation is strategically planning to obtain high-potential frontier exploration rights through a "small-scale shareholding" approach. UD(1) is located in water depths of 2,000 to 3,000 meters, adjacent to Exxon Mobil Corporation's Stabroek block where more than 30 discoveries have been made; Exxon Mobil Corporation executives have stated that the block's potential may be comparable to assets in Stabroek or Angola's deepwater. For Occidental Petroleum Corporation, this is not a short-term production transaction, but rather a strategic move to potentially tap into the "next giant discovery" in the Caribbean deepwater with low stakes in a high-oil price and energy security premium environment. For Exxon Mobil Corporation, bringing Occidental Petroleum Corporation on board has two implications: firstly, it helps distribute early-stage seismic exploration, future exploration well, and potential development risks, while still maintaining control; secondly, introducing another American upstream company to UD(1) helps strengthen the project's credibility and future capital market narrative. Exxon Mobil Corporation is currently conducting seismic exploration in the block, with data collection expected to be completed by the end of July, and the interpretation work may be completed by the end of 2026; whether or not they will drill an exploration well afterwards will become the first substantial validation point of the block's commercial potential.