August 30, 2023 [Oil Price]- Perth-based Woodside Energy Group has quantified the peak production it expects from its ultra-deepwater Trion oilfield in Mexico that it is developing jointly with Pemex at 100,000 bpd.
Woodside Energy (ASX:WDS) expects Trion to reach peak production by 2028, Mexico’s oil regulator said on Tuesday, while estimating the total cost for the project at nearly US$7.5 billion.
Woodside gave the green light for the project in June. Woodside owns 60% of the Trion field, with the remaining 40% held by Mexico’s state-run oil firm, Pemex, which discovered the field back in 2012. Pemex brought Woodside onto the project five years after discovery because it lacked the resources to develop Trion on its own.
Woodside expects a 16% return on the project with a short payback of four years, assuming $70 oil. The reserves that the project will tap have been estimated at 479 million barrels of oil equivalent in oil and gas. Of these, Woodside’s share is seen at 287 million barrels of oil equivalent. According to Pemex estimates, the gross recoverable reserves of Trion are 485 million barrels of oil equivalent.
Woodside expects the carbon intensity of the Trion project to be about 20% below the global average for deepwater field development and 50% of the global average for an oil project.
The Trion field is located in the Perdido Ford Belt in the Gulf of Mexico at a depth of 2,500 meters, 180 kilometers off the Mexican coastline and 30 kilometers south of the US/Mexico maritime border.
Trion would be the first oil production from Mexico’s deep water.
The project adds to Woodside’s Gulf of Mexico presence from its 2022 acquisition of BHP’s petroleum division, which includes assets in the Gulf of Mexico.
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