Woodside has made a final investment decision to develop the large, high-quality Trion resource in Mexico. First oil is targeted for 2028.
Woodside is operator with a 60% participating interest and PEMEX holds the remaining 40%.
The forecast total capital expenditure is US$7.2 billion (US$4.8 billion Woodside share including capital carry of PEMEX of approximately US$460 million). The investment is expected to deliver an internal rate of return (IRR) greater than 16% with a payback period of less than four years. The forecast IRR excluding the capital carry is greater than 19%.
The project will target the development of an estimated 479 MMboe of Best Estimate (2C) Contingent Resource (100%) of oil and gas (287 MMboe 2C Contingent Resources, Woodside net economic interest). The subsurface has been extensively appraised, with six well penetrations undertaken across the field.
The resource will be developed through a floating production unit (FPU) with an oil production capacity of 100,000 barrels per day. The FPU will be connected to a floating storage and offloading (FSO) vessel with a capacity of 950,000 barrels of oil.
Trion is located in a water depth of 2,500 meters, approximately 180 kilometers off the Mexican coastline and 30 kilometers south of the Mexico/US maritime border. Trion was discovered in 2012 by PEMEX. BHP Petroleum acquired an interest in 2017 which subsequently became part of Woodside’s portfolio in 2022.
Development of Trion will include the installation of an FPU, an FSO, and 18 wells (nine producers, seven water injectors and two gas injectors) drilled in the initial phase, with a total of 24 wells drilled over the life of the Trion project. The forecast total capital expenditure of US$7.2 billion includes all 24 wells. Gas that is not reinjected or used on the FPU will be shipped to the Mexican markets.
Woodside CEO Meg O’Neill said Trion is an attractive addition to Woodside’s portfolio of high-quality producing assets in the Gulf of Mexico. “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. This development leverages Woodside’s proven expertise in deepwater project execution.
Trion has an expected carbon intensity of 11.8 kgCO2-e/boe average over the life of the field, which is lower than the global deepwater oil average.
“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 O’Neill.