Woodside's Trion Project Receives Social Impact Approval

Mexico’s Ministry of Energy has approved Woodside Energy's Social Impact Assessment for the Trion oil and gas project, marking a significant milestone in the development of this project. The assessment, which outlines Woodside's strategies to manage social impacts and showcases its commitment to local communities, was submitted in May 2023.

“This approval marks an important milestone on the pathway to developing this nationally significant resource project,” says Matthew Ridolfi, Executive Vice President Projects, Woodside. “We appreciate the ongoing support we have received from the Mexican government for Trion.” 

Woodside Energy, in partnership with PEMEX, is spearheading the development of Trion, which represents Mexico's first ultra-deepwater oil production. Located in the Gulf of Mexico, about 180km off the Mexican coast and at a water depth of 2,500m, Trion is poised to begin production in 2028.

“The approval also validates Woodside’s approach to how we engage with communities wherever we work and recognises our high operating standards. It reflects the excellent work of our technical team, our consultants, and the strong professional relationships we have established with Mexico’s regulatory authorities,” says Ridolfi. The Social Impact Assessment will be a critical tool in helping manage the project during the construction phase, promoting engagement with local communities and fostering economic development opportunities, he adds. 

The Trion project's Final Investment Decision (FID) was disclosed in June 2023. In August, Woodside obtained approval from the Mexican regulator for the project’s field development plan (FDP). This project will use a Floating Production Unit (FPU) with a daily oil production capacity of 100,000 barrels, which will be linked to a Floating Storage and Offloading (FSO) vessel capable of storing 950,000 barrels of oil. Hyundai Heavy Industries awarded a commissioning contract for the FPU to Houston-based Gate Energy.

Woodside's teams in Houston and Bogota, Colombia, are tasked with delivering detailed topside design work for the FPU project over the next three years. The projected total capital expenditure for Trion stands at US$7.2 billion, with Woodside's share amounting to US$4.8 billion, inclusive of PEMEX's capital carry of approximately US$460 million.

Initial development of Trion involves drilling 18 wells, with a total of 24 wells planned over the project's lifespan. Any excess gas not reinjected or used on the FPU will be transported to the domestic natural gas network via a subsea gas pipeline.

According to the company, 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. 

The company says that approving the Trion investment does not compromise its greenhouse gas emissions reduction targets, adding 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.