Woodside to develop $7.2 billion Trion oil field offshore Mexico
(WO) – Woodside has made a final investment decision to develop the large, high-quality Trion oil field in Mexico. First oil is targeted for 2028. Woodside is the operator with a 60% participating interest and PEMEX Exploración y Producción (PEMEX) holds the remaining 40%. The forecast total capital expenditure is $7.2 billion with the development expected to deliver strong returns to Woodside shareholders as well as economic and social benefits to Mexico.
The project will target the development of an estimated 479 MMboe. The subsurface has been extensively appraised, with six well penetrations undertaken across the field, informing Woodside’s understanding of this large, high-quality conventional oil field. The field will be developed through a floating production unit (FPU) with an oil production capacity of 100,000 bpd. The FPU will be connected to a floating storage and offloading (FSO) vessel with a capacity of 950,000 boe.
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 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, and will be subject to Woodside’s corporate net equity Scope 1 and 2 emissions reduction targets.6
“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.
“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,” she said.
IPCC analysis shows there are a range of future energy transition pathways, including pathways which are consistent with limiting global temperature rise to less than 1.5°C and require new supply sources to meet demand. Consideration of a range of climate-related factors as a part of the Trion investment decision gives Woodside confidence that Trion can responsibly fill that demand.
The range of climate-related factors includes project Scope 1 and 2 greenhouse gas emissions, portfolio Scope 1, 2 and 3 lifecycle intensity, climate related risks and opportunities assessed in accordance with the Taskforce on Climate-related Financial Disclosures, demand resilience including 1.5°C pathways and portfolio free cash flow resilience across the IEA’s Net Zero Emissions (NZE) scenario.
Trion is located in a water depth of 2,500 m, approximately 180 km off the Mexican coastline and 30 km south of the Mexico/US maritime border. Trion was discovered in 2012 by PEMEX.
Development of Trion, which is subject to joint venture and regulatory approval of the FDP, 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 $7.2 billion includes all 24 wells. Gas that is not reinjected or used on the FPU will be shipped to the Mexican markets.