Subsea7 secures major contract from Woodside Energy for Trion development

In a significant development for the offshore oil and gas sector, Subsea7 has announced the acquisition of a substantial contract, valued between USD 300 million and USD 500 million, from Woodside Energy. This contract entails Subsea7 providing subsea installation services for the Trion development, a notable project situated approximately 30 kilometers south of the US/Mexico border and 180 kilometers from the Mexican coastline, in waters reaching depths of 2,600 meters.

Subsea7’s Role and Project Overview

Subsea7, a key player in the offshore energy services, will undertake the engineering, construction, and installation of the subsea umbilicals, risers, and flowlines (SURF), along with the associated subsea architecture for the Trion field. This field, located in the Gulf of Mexico’s Perdido Fold Belt at a depth of 2,500 meters, marks a pioneering venture into Mexico’s deepwater oil production.

The Trion development, a collaboration between Woodside Energy and Pemex (Mexico’s state-owned petroleum company), aims to utilize a wet tree subsea system connected to an infield Floating Production Unit (FPU). With project management and engineering set to commence immediately from Subsea7’s offices in the US and Mexico, offshore activities are slated for 2026 to 2027.

Craig Broussard, Subsea7’s Vice President for the Gulf of Mexico, emphasized the significance of this partnership, stating, “This award acknowledges our strong partnership with Woodside globally. With our experience in the Gulf of Mexico and proven track record, we can deliver innovative, reliable, fast-tracked solutions that create value for our clients. We are proud to be a part of Woodside and Pemex’s first deepwater development in Mexico.”

Trion Field and Development Insights

Discovered by PEMEX in 2012, the Trion field’s development strategy gained momentum following BHP Petroleum’s involvement in 2017, which has since transitioned to Woodside’s portfolio following their merger. The project’s scale and its strategic importance are underscored by the associated contracts for the FPU engineering, procurement, and construction (EPC) with HD Hyundai Heavy Industries, the rig contract with Transocean, and further partnerships for FPU and floating storage offloading (FSO) installation with SBM Offshore, alongside a subsea trees contract with OneSubsea UK.

Woodside, as the operator holding a 60% participating interest with PEMEX Exploración y Producción retaining the remaining 40%, is set to direct the development towards a projected first oil by 2028. The development is expected to include 18 wells in its initial phase, with a total of 24 wells planned over the project’s lifespan. The FPU will have an oil production capacity of 100,000 barrels per day, connecting to a FSO vessel with a 950,000-barrel capacity, signifying a major step towards harnessing Mexico’s deepwater oil potential.