Trion oil project : Woodside Energy gets green light from Mexican regulator CNH
In a major win for Woodside Energy Group, the Australian oil and gas giant has secured pivotal regulatory approval for its $7.2 billion Trion oil project offshore Mexico. The green light comes from Mexican regulator Comision Nacional de Hidrocarburos (CNH). The project is expected to begin oil production in 2028, further expanding Woodside’s footprint in the energy sector.
Regulatory and Joint Venture Approvals Finalized for Trion Oil Project
The approval follows Woodside’s final investment decision (FID) on the Trion oil project made in June 2023. Both joint venture and regulatory approval for the field development plan (FDP) have been satisfied, paving the way for the Trion oil project to fully transition into its execution phase. “This milestone allows us to fully progress into execution phase activities with our contractors,” said Woodside CEO Meg O’Neill.
Woodside and PEMEX Partner on Trion Project with Significant Oil Reserves
Woodside Energy holds a commanding 60% stake in the Trion oil field, while its joint venture partner, Mexico-based PEMEX Exploración y Producción, owns the remaining 40%. After gaining CNH’s approval, Woodside has logged 324.7 million barrels of oil equivalent (MMboe) in gross proved undeveloped reserves. Of this, Woodside’s share will be an impressive 194.8MMboe. Additionally, the proved plus probable (2P) undeveloped reserves stand at 478.7MMboe, with Woodside’s share being 287.2MMboe.
Trion’s Strategic Location and Production Plans
Located at a water depth of 2,500 meters and approximately 180km off the Mexican coastline, Trion is also just 30km south of the maritime border between Mexico and the U.S. The field was originally discovered by PEMEX in 2012. For production, a floating production unit (FPU) with a daily capacity of 100,000 barrels of oil will be deployed. This will be connected to a floating storage and offloading (FSO) vessel capable of storing up to 950,000 barrels of oil.
Multi-Phase Drilling Strategy for Trion Oil Project
The first phase of the Trion oil project entails drilling 18 wells. Nine of these will serve as production wells, seven as water injectors, and two as gas injectors. Throughout the lifespan of the project, a total of 24 wells are planned to be drilled. This multi-phase drilling strategy is expected to contribute significantly to both Woodside and PEMEX’s future oil output.
Historical Context and Future Implications
Woodside’s engagement in Trion was facilitated by a merger with BHP Petroleum, which acquired a stake in the deepwater oil project in 2017. This multi-billion-dollar merger last year solidifies Woodside’s presence in the high-stakes world of offshore oil production.
With this crucial regulatory approval for the Trion oil project offshore Mexico, Woodside Energy Group is setting the stage for a substantial boost in oil production capabilities, thereby securing its leadership position in the global energy market.