Woodside Reports 50% Progress at Trion

Woodside Energy reported that the Trion ultra-deepwater oil project in Mexico reached 50% completion by the end of 2025, marking a major milestone for what is expected to become one of the most significant offshore developments in the country’s recent history. The update was included in Woodside’s quarterly report for the period ended Dec. 31, 2025, and reflects steady progress across engineering, procurement, fabrication and regulatory approval phases, despite the technical complexity and capital intensity associated with ultra-deepwater projects.

According to Woodside Acting CEO Liz Westcott, the company delivered strongly against its 2025 business objectives, outperforming its production guidance while advancing key growth projects across its global portfolio. Within that context, Trion stands out as a cornerstone asset for Woodside in the Americas and a strategic project for Mexico’s offshore sector. Westcott stated that the Trion Project in Mexico was 50% complete at the end of the year, with hull assembly and the installation of all critical equipment on the topside modules now completed, underscoring the transition from early-stage development into a more execution-focused phase.

The Trion field is located in ultra-deepwater in the Perdido Fold Belt, approximately 180km off the coast of Tamaulipas, near the maritime border with the United States. The field was discovered in 2012 and is one of Mexico’s largest deepwater finds, with estimated resources that have positioned it as a long-term contributor to national production once it comes online. Woodside holds a 60% participating interest in Trion and serves as operator, while PEMEX retains the remaining 40% interest, reflecting one of the most important partnerships between the national oil company and a private operator in Mexico’s upstream sector.

Progress reported by Woodside indicates that several technically demanding components of the project have moved forward as planned. The floating production unit hull assembly has been completed, along with the erection of the upper column frame and the installation of critical equipment on the topside modules. These steps are central to the integrity and operability of the production facility, particularly given the depth and environmental conditions in which Trion will operate. The completion of these elements reduces execution risk and provides greater visibility on the project schedule.

In parallel, Woodside has advanced procurement and fabrication activities for the floating storage and offloading unit, a key piece of infrastructure that will enable the handling, storage and export of crude oil produced at Trion. Subsea equipment manufacturing has also progressed, including the completion and testing of the first subsea Christmas tree. This milestone is particularly significant, as subsea systems are among the most complex and capital-intensive components of deepwater developments, requiring high levels of precision, reliability and safety.

Planning activities have continued for the drilling campaign, as well as for the installation of subsea umbilicals, risers, flowlines and the gas gathering line. Installation activities for these systems are expected to commence in 2026, aligning with the broader development schedule and supporting Woodside’s target of achieving first oil in 2028. The company has emphasized that maintaining alignment between fabrication progress, offshore installation windows and regulatory approvals will be critical to meeting this timeline.

One of the most important developments reported in the quarterly update was the regulatory approval of the health, safety and environment management system for the Trion Project. This approval represents the final authorization required to commence field activities, clearing a major regulatory hurdle and allowing Woodside and its partners to move confidently into the next execution phase. In Mexico’s offshore regulatory environment, HSE approvals are particularly critical, reflecting heightened scrutiny on operational safety, environmental protection and risk management following past offshore incidents.

The advancement of Trion comes at a time when Mexico’s oil production faces structural challenges. National crude output has declined over the past decade due to the natural depletion of mature shallow-water and onshore fields, combined with limited investment in new developments. Deepwater projects like Trion are widely viewed as essential to stabilizing and eventually increasing Mexico’s production profile over the medium to long term, given their large resource potential and longer production plateaus once operational.

Trion represents a strategic test case for Mexico’s deepwater ambitions, not only because of its size and complexity, but also because of the collaboration model between a global operator and PEMEX. In a presentation delivered by Karelis Holuby, Deputy Project Director for Trion, at Mexico Oil and Gas Summit 2025, Woodside highlighted the technical rigor, phased execution strategy and close coordination with Mexican authorities that underpin the project’s development. Holuby emphasized that Trion is designed to meet international standards for ultra-deepwater operations while integrating local content and regulatory requirements specific to Mexico.

From Woodside’s perspective, Trion fits squarely within its global growth strategy, which prioritizes long-life, high-margin assets capable of delivering stable cash flows over decades. The company has consistently stated that disciplined capital allocation and operational excellence are central to its approach, particularly in an environment characterized by price volatility, investor scrutiny and rising expectations around environmental performance. The progress achieved at Trion during 2025 suggests that the project remains aligned with these strategic priorities.

For Mexico, the importance of Trion extends beyond production volumes. Deepwater developments generate significant spillover effects across engineering, fabrication, logistics and specialized services, potentially strengthening domestic capabilities in high-value segments of the oil and gas value chain. While much of the specialized equipment is manufactured internationally, offshore installation, port services and ongoing operations can create opportunities for Mexican companies and workers, particularly as the project moves closer to first oil.

At the same time, Trion also highlights the long timelines and capital intensity inherent in deepwater oil projects. From discovery to first production, Trion will span more than 15 years, illustrating why sustained policy stability and regulatory certainty are critical for attracting and retaining investment in this segment. Any disruptions to permitting processes, fiscal terms or operational frameworks can have outsized impacts on project economics and schedules.

Woodside’s reaffirmation that first oil remains targeted for 2028 provides a degree of certainty for both investors and policymakers. If achieved, Trion would begin contributing production at a time when several of PEMEX’s legacy fields are expected to be in more advanced stages of decline. This timing reinforces the role of deepwater as a strategic pillar of Mexico’s future oil supply, even as the country navigates energy transition goals and climate commitments.

Environmental and safety considerations also remain central to the Trion narrative. Ultra-deepwater operations carry inherent risks, and both Woodside and Mexican regulators have stressed the importance of robust risk management systems. The approval of the HSE management system suggests that the project has met stringent requirements, but ongoing oversight will be essential throughout drilling, installation and production phases. Mexico Business News has noted that regulatory agencies are increasingly focused on operational integrity, emergency response readiness and environmental monitoring in offshore projects.

In the broader regional context, Trion positions Mexico alongside other deepwater producers in the Gulf of Mexico, particularly the United States, where deepwater fields have become a major source of incremental supply. The proximity of Trion to the maritime border underscores the shared geological characteristics of the region, while also highlighting differences in regulatory frameworks, cost structures and development timelines between the two countries.