Woodside, PEMEX Launch Trion Drilling Campaign

Woodside Energy and PEMEX launched drilling operations at the Trion Field on March 9, 2026, marking the formal start of Mexico's first ultra-deepwater oil development, a US$11 billion program targeting 24 subsea wells and peak production of approximately 100Mb/d via a dedicated floating production unit. At 50% overall completion and on schedule, Trion is projected to contribute 6–7% of Mexico's current daily oil output at peak capacity, delivering over US$10 billion in taxes and royalties over the project's life while expanding domestic supply chain participation in a technically demanding sector. The project's low-carbon crude profile and Woodside's operator role signal a structural shift in Mexico's upstream development model toward complex international partnerships.

Mexico's deepwater oil frontier has crossed a defining threshold. Woodside Energy, operating in partnership with PEMEX, formally launched the drilling campaign at the Trion Field on March 9, 2026, commencing what will become one of the most technically complex offshore development programs ever undertaken in Mexican waters. The start of drilling marks the culmination of nearly a decade of partnership-building, engineering preparation, and regulatory approvals, and sets the stage for what both companies describe as a transformative contribution to Mexico's long-term energy security.

The Trion Field sits in ultra-deep waters of the Gulf of Mexico, approximately 180km off the coast of Tamaulipas and just 30km south of the US-Mexico maritime boundary. Discovered by PEMEX in 2012 in the Perdido Fold Belt, Trion became a partnership between the national oil company and Woodside in 2017, originally through BHP Petroleum, whose assets Woodside absorbed following their merger, and represents Mexico's first ultra-deepwater oil development. The project received its final investment decision (FID) in 2023, unlocking what has grown into an estimated US$11 billion development program.

The drilling campaign will execute 24 subsea wells, comprising 12 production wells, 10 water injection wells, and two gas injection wells, to be connected to a floating production unit (FPU) named Tláloc, with a nameplate capacity of approximately 100Mb/d. Produced crude will be loaded into a floating storage and offloading facility (FSO) named Chalchi, with a storage capacity of 950Mb/d. The wells will be drilled by Transocean's Deepwater Thalassa, a high-specification ultra-deepwater drillship that arrived in Mexican waters on March 5, 2026. Transocean has been a presence in Mexico's deepwater sector since 2021, when its Deepwater Invictus drilled the country's first-ever ultra-deepwater well, also at Trion. Logistics and supply chain operations will be based out of ports in the state of Tamaulipas, directly benefiting regional suppliers and service providers.

Woodside Acting CEO Liz Westcott framed the drilling launch in strategic terms: "The start of the drilling program represents a milestone for the Trion Project and for Mexico's deepwater oil and gas sector. It underscores the strength of our collaboration with PEMEX and our shared commitment to delivering this world-class project safely and efficiently. Trion is more than a significant resource; it is an opportunity to enhance Mexico's energy security, build local capability and generate enduring economic value for the country."

The project comes to the drill bit in strong shape. Woodside reported that Trion had reached 50% overall completion by the end of 2025, with the floating production unit hull assembly completed, the upper column frame erected, and critical topside module equipment installed. The first subsea Christmas tree, among the most technically demanding components of a deepwater development, was completed and tested, and planning for the installation of subsea umbilicals, risers, and flowlines was advanced. The project has remained on schedule and within its approved budget, a notable achievement given the scale and complexity of ultra-deepwater execution.

Drilling operations will be managed through SLB's Performance Live digital service delivery centers, with SLB's technology suite, including AI-enabled hardware and advanced digitally integrated well construction systems, brought to bear on water depths of up to 2,500m. Woodside Vice President for Trion, Stephane Drouaud, emphasized the human dimension behind the technical progress: "The progress we are seeing at Trion reflects the dedication and expertise of our project team and partners who have worked tirelessly to advance this development. From engineering and planning through to drilling execution, the team is safely and systematically moving the project forward."

The reservoir produces low-sulfur, low-carbon crude, enhancing the efficiency and sustainability of operations, and Woodside projects the carbon intensity of Trion at approximately 11.8kg/boe of CO2e, lower than many deepwater benchmarks globally. That environmental profile strengthens the project's long-term commercial positioning as refiners in Asia and Europe increasingly prioritize lower-carbon crude grades.

The economic stakes for Mexico are substantial. Over the life of the project, Trion is expected to deliver more than US$10 billion in taxes and royalties to Mexico, while generating direct and indirect employment and expanding the participation of Mexican suppliers in a technically demanding sector where domestic expertise has historically been limited. Upon reaching full capacity, Trion is expected to contribute 6 to 7% of Mexico's current daily oil production, a meaningful addition at a time when output from several of PEMEX's legacy shallow-water fields continues to decline.

Woodside holds a 60% participating interest in Trion and serves as operator, with PEMEX holding the remaining 40%.