On Monday, Woodside Energy Group Ltd. (NYSE:WDS) announced that the company has officially commenced drilling at the Trion Field, a major ultra-deepwater project in the Gulf of Mexico, in partnership with Petróleos Mexicanos (PEMEX).

This marks a significant milestone. It follows the project’s Final Investment Decision (FID) made in 2023.

Acting CEO Flags Strategic Value for Mexico

Woodside Acting CEO Liz Westcott highlighted the project’s national importance.

“The start of the drilling program represents a milestone for the Trion Project and for Mexico’s deepwater oil and gas sector,” Westcott said.

“It underscores the strength of our collaboration with PEMEX and our shared commitment to delivering this world-class project safely and efficiently.”

24-Well Campaign Targets 100,000 Barrels Per Day

The campaign includes 24 subsea wells. They will connect to a floating production unit (FPU) named Tláloc.

Tláloc carries a nameplate capacity of approximately 100,000 barrels per day.

Production will transfer to a floating storage and offloading (FSO) facility named Chalchi, with a storage capacity of 950,000 barrels.

Transocean’s drillship Deepwater Thalassa will execute the wells. The vessel arrived in Mexican waters on March 5. Supply logistics operate from ports in the state of Tamaulipas, boosting regional supply chains.

First Oil Targeted for 2028; $10B in Mexican Revenues Expected

Woodside Vice President for Trion, Stephane Drouaud, credited the project team’s execution.

“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,” Drouaud said.

The project remains on schedule. First oil is targeted for 2028.

Over the life of the project, Trion is expected to deliver more than $10 billion in taxes and royalties to Mexico. It will also create direct and indirect employment and expand opportunities for Mexican suppliers.

Woodside holds a 60% participating interest in Trion and operates the project. PEMEX holds the remaining 40%.

WDS Price Action: Woodside Energy Group shares were down 1.84% at $21.93 at the time of publication on Monday. The stock is trading near its 52-week high of $22.44, according to Benzinga Pro data.

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