Published: June 19, 2023 at 6:32 p.m. ET
SYDNEY–Woodside Energy said it will proceed with the Trion deepwater oil project in the Gulf of Mexico, estimating it will cost US$7.2 billion to develop with first production targeted in 2028.
Woodside said its share of development costs would by US$4.8 billion, which it will fund alongside other major projects around the world, including in Australia and West Africa. The remaining expenditure will be shouldered by Mexico’s Pemex, which owns 40% of Trion.
Woodside…
By David Winning
SYDNEY–Woodside Energy said it will proceed with the Trion deepwater oil project in the Gulf of Mexico, estimating it will cost US$7.2 billion to develop with first production targeted in 2028.
Woodside said its share of development costs would by US$4.8 billion, which it will fund alongside other major projects around the world, including in Australia and West Africa. The remaining expenditure will be shouldered by Mexico’s Pemex, which owns 40% of Trion.
Woodside estimated Trion would deliver an internal rate of return of more than 16%, with a payback period of less than four years. Trion has an estimated contingent resource of 479 million barrels of oil equivalent.
A floating production unit with a production capacity of 100,000 barrels of oil per day would be located at Trion, and this would be connected to a floating storage and offloading vessel with a capacity of 950,000 barrels of oil, Woodside said.
“This development leverages Woodside’s proven expertise in deepwater project execution,” Meg O’Neill, Woodside’s chief executive, said on Tuesday. “The project’s tendering process has resulted in approximately 70% of total forecast capital expenditure as lump sum or fixed rates, with key contracts to be progressively executed following joint venture approval.”
Write to David Winning at david.winning@wsj.com
Read More: Woodside Approves Development of Trion Deepwater Oil Project