Woodside announces FID for US$7.2 billion Trion project offshore Mexico

Must Read

OilNOW is an online-based Information and Resource Centre

Australian energy company, Woodside, has decided to develop the Trion resource in Mexico. 

The Trion resource development is subject to joint venture approval and regulatory clearance of the field development plan (FDP), anticipated to be completed in the fourth quarter of 2023. Woodside will operate the project with a 60% participating interest, while PEMEX Exploración y Producción (PEMEX) holds the remaining 40% stake.

Woodside’s investment in the Trion resource development is projected to have compelling financial returns. The forecasted total capital expenditure for the project is estimated at US$7.2 billion, with Woodside’s share amounting to US$4.8 billion, including the capital carry of approximately US$460 million from PEMEX. The company expects the development to deliver an internal rate of return (IRR) greater than 16% with a payback period of less than four years. Moreover, the forecasted IRR, excluding the capital carry, is even higher, exceeding 19%.

The Trion project aims to tap into an estimated 479 million barrels of oil equivalent of Best Estimate (2C) Contingent Resource, with Woodside’s net economic interest amounting to 287 MMboe. Woodside said it has done extensive subsurface appraisals and six well penetrations.

To extract and process the Trion resource, Woodside plans to utilise a floating production unit (FPU) with a daily oil production capacity of 100,000 barrels. The FPU will be connected to a floating storage and offloading (FSO) vessel, which can accommodate up to 950,000 barrels of oil. 

Woodside sadi Trion will also bring about significant economic and social benefits to Mexico, with job creation, revenue generation, and overall economic growth in the region. 

“We have considered a range of oil demand forecasts and believe Trion can help satisfy the world’s energy requirements. Two-thirds of the Trion resource is expected to be produced within the first 10 years after start-up,” said Woodside CEO Meg O’Neill. “We are developing Trion because we believe it will deliver value for Woodside shareholders and benefit for Mexico, including generation of jobs, taxation revenue and social benefit. We value the ongoing relationship with PEMEX and the support of the Mexican Government and regulators.”


Partnered Events

Latest News

“I will not be compromised” – Pres. Ali on sanctioned businessmen 

Guyana’s President, Irfaan Ali, is adamant that he will not be compromised in wake of sanctions levelled against two...

More Articles Like This