Woodside Energy has taken a final investment decision (FID) in Mexico’s Trion project, which should reach first oil in 2028.
The $7.2 billion project will have production capacity of 100,000 barrels per day. Woodside is the operator with a 60% stake, shouldering $4.8bn of the cost. State-owned Pemex holds the remaining 40%.
The Australian company is also providing a capital carry to Pemex of $460 million.
The development is centred around a floating production unit (FPU), which the plan sees connected to an FSO capable of storing 950,000 barrels of oil. Trion is targeting 479 million barrels of oil equivalent of best estimate contingent resource, of which 287mn boe are net to Woodside.
Pemex discovered Trion in 2012. The Mexican company brought BHP Billiton in to the plan in 2016 in order to help develop the field. Now, the companies have drilled six wells on the field. Woodside bought BHP in 2022.
The field is in 2,500 metres of water, around 180 km offshore. The development will include 18 wells, including nine producers, seven water injectors and two gas injectors. Over the full life of the field, Woodside expects to drill 24 wells. Drilling should start around 2026 and run through to 2031.
Long-term value
“Trion is a valuable resource with a mature development concept. Our strong balance sheet and disciplined approach enable us to invest in opportunities such as Trion, expanding our global portfolio and delivering long-term value,” said Woodside CEO Meg O’Neill.
Trion will be a “strong contributor” to Woodside’s cash flows and shareholder returns.
“This development leverages Woodside’s proven expertise in deepwater project execution. 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.”
BHP and Pemex declared Trion to be commercial in 2021. BHP spent $258mn on front-end engineering and design (FEED).
Demand forecasts
Emissions from the field will average 11.8 kg of CO2e per boe, she said. This is lower than the global deepwater oil average. The company reported that design efficiency and reductions in flaring and venting reduced this from 19.4 kg of CO2e.
“We have considered a range of oil demand forecasts and believe Trion can help satisfy the world’s energy requirements.” Woodside expects to produce two-thirds of the Trion resource within the first 10 years.
Woodside believes the field will provide a 16% IRR and payback investment in the first four years.
Pemex and Wintershall Dea expect to take FID on the Zama field in 2024. This project is expected to reach 180,000 bpd.