PEMEX, Woodside to Develop First Deepwater Field in Mexico

PEMEX and Woodside Energy announced they will be starting the construction of the first deepwater oil field in the Gulf of Mexico, a landmark development in Mexico’s growing offshore sector. According to José Ramón Silva Arizabalo, the Commissioner of Energy in Tamaulipas, this project will singlehandedly revive the northern port. 

In the next few days, the two companies will hold a meeting regarding the construction of installations in the port. Silva did not specify the number of wells that will be drilled, nor the amount of oil that will be produced, though previous estimates set the resources at 485MMboe.

Moreover, he pointed out that the Trion field will generate jobs in the northern part of Tamaulipas. The commissioner highlighted that as the port, exploration and exploitation of the oil field ramp up, the environment’s protection will be prioritized for the fishermen of the Laguna Madre and those working in the region. The government held various meetings with the fishers, which agreed with the project development and the port’s revamping.

For the development of the Northern Port, an area of 300ha has been allocated to be fully dedicated to hydrocarbons. Silva insisted that the objective is to enable oil and gas production to coexist with fishing and tourism, so the application of environmental measures will be strict. 

The Trion Project is a milestone for previously untapped deepwater development in Mexico. While the current administration has focused its resources on diminishing PEMEX’s massive debt, experts have emphasized the importance of tapping into deepwater development amid depleting 3P reserves, although the government seems to prefer tried-and-tested methods for onshore and shallow-water developments. However, the new agreement paves a path for deepwater development to pick up its pace.

PEMEX discovered  Trion in 2012. In 2017, BHP Petroleum and PEMEX signed an agreement for the development of the deepwater project. Following its merger with BHP Petroleum, Woodside Energy continued the agreement with PEMEX. Having completed the FEED phase in August, Woodside issued a call for bids to provide floating production units (FPU), floating storage and offloading units (FSO) and other field support works. Estimated to have reserves of more than 1 billion boe, Trion is seen as one of the most interesting deepwater prospects in Mexico.

In October, PEMEX CEO Octavio Romero Oropeza signed a collaborative agreement with Woodside Energy, incorporating the NOC’s Mexican into the IOC’s activities in Houston. The main goal of this strategy is for the personnel to “acquire knowledge in exploration and production strategies,” said PEMEX, particularly regarding deepwater operations.