Australian energy company Woodside has obtained approval from Mexico's Comision Nacional de Hidrocarburos (CNH) for the field development plan (FDP) of its deepwater oil project in the Perdido basin in the Gulf of Mexico. The project, named Trion, is located 30 km south of the Mexico-U.S. maritime border.

Woodside had postponed the final investment decision (FID) for the Trion project from 2022 to 1Q 2023. The FID was confirmed in June 2023, pending Trion joint venture approval and regulatory clearance of the FDP, both of which have now been achieved. The total capital expenditure for the project is estimated at $7.2 billion, with Woodside's share being $4.8 billion, including a capital carry of approximately $460 million from PEMEX.

Meg O’Neill, Woodside CEO, expressed her satisfaction with the FDP approval, highlighting the transition to the execution phase with contractors and Woodside's commitment to collaborating with PEMEX and other stakeholders to bring the project to fruition.

Upon FDP approval, Woodside has recorded proved (1P) undeveloped reserves of 324.7 million barrels of oil equivalent (mmboe) gross, with a Woodside share of 194.8 mmboe. Additionally, proved plus probable (2P) undeveloped reserves total 478.7 mmboe gross, with a Woodside share of 287.2 mmboe.

The development of the Trion project, located in water depths of 2,500 meters and approximately 180 km off the Mexican coastline, involves several key contracts with companies such as Hyundai Heavy Industries, Transocean, SBM Offshore, and OneSubsea UK. The project is set to be developed through a floating production unit (FPU) with an oil production capacity of 100,000 barrels per day, connected to a floating storage offloading (FSO) vessel with a 950,000-barrel capacity.

The project aims to drill 18 wells in its initial phase, consisting of nine producers, seven water injectors, and two gas injectors. The gas not used on the FPU will be delivered to the domestic natural gas pipeline network through a subsea gas pipeline. The first oil production is targeted for 2028, and the project's expected carbon intensity is 11.8 kg CO2-e/boe over its field life.

Woodside operates the Trion development with a 60% participating interest, while PEMEX holds the remaining 40%. In addition to traditional oil and gas ventures, Woodside is actively exploring opportunities in emerging energy sectors, including ammonia, hydrogen, carbon capture and storage (CCS), and carbon management technology, through collaborations with Sumitomo Corporation and Sojitz Corporation.