Woodside Energy bets $7.2bn on Mexico’s Trion oil field, targets first oil in 2028

In a substantial investment decision, Australia‘s Woodside Energy Group has committed to moving ahead with the $7.2 billion Trion oil project in Mexican waters.

The capital-intensive deepwater project in the Gulf of Mexico, operated by Woodside with a majority stake of 60%, anticipates producing an estimated 479 million barrels of oil equivalent (MMboe) of best estimate (2C) contingent resource of oil and gas. The initial yield from the oil field is set for 2028.

Woodside’s partner in the venture, Mexico-based PEMEX Exploración y Producción, holds the remaining 40% stake. The project’s commencement awaits the green light from the joint venture and regulatory approval for the field development plan (FDP), anticipated in the fourth quarter of 2023.

Meg O’Neill — Woodside CEO said: “Trion is a valuable resource with a mature development concept. Our strong balance sheet and disciplined approach enable us to invest in opportunities such as Trion, expanding our global portfolio and delivering long-term value.

“The investment is aligned with Woodside’s strategy, exceeds Woodside’s capital allocation framework targets and will be a strong contributor to Woodside’s cash flows, shareholder returns and the funding of future developments in oil, gas and new energy.”

Woodside Energy takes FID on $7.2bn deepwater Trion oil field development. Photo courtesy of Woodside.

The Trion oil field, situated in a water depth of 2,500 meters, some 180 kilometers off the Mexican coast, and 30 kilometers south of the maritime border between Mexico and the US, will be developed using a floating production unit (FPU) with a production capacity of 100,000 barrels per day. Linked to this unit will be a floating storage and offloading (FSO) vessel with a 950,000-barrel capacity.

The project’s initial phase will see the drilling of 18 wells, including nine producers, seven water injectors, and two gas injectors. Throughout the Trion project’s lifespan, a total of 24 wells are slated for drilling.

The oil field was discovered in 2012 by PEMEX, and BHP Petroleum became a stakeholder in 2017. Last year, BHP Petroleum merged with Woodside in a deal worth several billion dollars.