Trion to Reach First Oil in 2028

In December 2022, Woodside Energy's Trion FPS project in Mexico caught the attention of industry experts, with Westwood highlighting it as a key unit to watch in 2023. However, to optimize the development plan, execution strategy, costs and schedule, Woodside decided to delay the final investment decision (FID) originally planned for 2022. During the same month, the company received confirmation from CNH that the minimum work program obligation associated with the Trion license had been fulfilled.

Fast forward to June 20, 2023, Woodside announced the long-awaited FID for the Trion project, revealing a target for first oil production set for 2028. However, this milestone is subject to joint venture approval and regulatory clearance of the field development plan (FDP), expected for 4Q23. Woodside operates the project with a 60% participating interest, while PEMEX Exploración y Producción holds the remaining 40% stake.

Woodside projects a total capital expenditure of US$7.2 billion, with the firm's share amounting to US$4.8 billion, including capital carry of approximately US$460 million from PEMEX. The investment is expected to yield an internal rate of return (IRR) above 16%, with a payback period of less than four years. The forecasted IRR, excluding the capital carry, surpasses 19%.

Trion aims at an estimated 479MMboe of best estimate contingent resources, with Woodside's net economic interest comprising 287MMboe. To achieve this, the project will employ a floating production unit (FPU) with an oil production capacity of 100M/d. This FPU will be connected to a floating storage and offloading (FSO) vessel capable of storing up to 950Mb.

Meg O'Neill, CEO, Woodside expressed the significance of Trion as a valuable resource with a mature development concept. More importantly, the investment aligns with Woodside's strategic goals, exceeding its capital allocation framework targets. It is expected to contribute significantly to the company's cash flows, shareholder returns and future developments in oil, gas and new energy. Woodside's expertise in deepwater project execution further bolsters confidence in the project's success.

The company stresses that approving the Trion investment does not compromise its greenhouse gas emissions reduction targets. Recognizing the range of future energy transition pathways, including those aligned with limiting global temperature rise to less than 1.5°C, Woodside believes that responsibly meeting energy demand requires the development of new supply sources. According to the company, the Trion project, assessed based on a comprehensive set of climate-related factors, offers a sustainable solution to meet global energy requirements.