Woodside Energy gets nod to develop Mexico's Trion deepwater oil project - Reuters.com

Woodside Energy gets nod to develop Mexico's Trion deepwater oil project | Reuters

Woodside Energy gets nod to develop Mexico's Trion deepwater oil project

FILE PHOTO: A plant decorates the booth of Australian petroleum exploration and production company Woodside Energy during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 13, 2023. REUTERS/Chris Helgren/File Photo/File Photo Acquire Licensing Rights

- Summary
- Companies

- Trion first oil targeted in 2028
- Woodside FID share is $4.8 bln

Aug 30 (Reuters) - Australia's Woodside Energy (WDS.AX) said on Wednesday the development plan for its Trion deepwater oil project in Mexico was approved by the North American country's oil and gas exploration regulator.

Woodside, 60% owner and operator of Trion, is targeting first oil from the project in 2028.

"This milestone allows us to fully progress into execution phase activities with our contractors," Woodside CEO Meg O'Neill said in a statement.

In mid-June, Woodside forecast its share of the capital expenditure for the project to be $4.8 billion, with the remainder of the total costs of $7.2 billion set to be funded by Mexican state-owned oil company PEMEX, which owns 40% of Trion.

After the approval of the development plan by Mexico, Woodside booked gross proved undeveloped reserves of 324.7 million barrels of oil equivalent (mmboe), with the Australian oil and gas explorer holding 194.8 mmboe, it said.

Adding probable undeveloped reserves, the site holds gross 478.7 mmboe, with Woodside's share being 287.2 mmboe.

Woodside inherited the project last June from BHP Group (BHP.AX), the world's largest listed miner. BHP had been aiming for a final investment decision on the project last year, but rising costs resulted in delays.

Late Tuesday, the Mexican oil regulator said Woodside estimated peak production from the project to reach 110,000 barrels per day (bpd) by 2028, with total extraction of crude forecast to reach 434 million barrels during the contracted period, up to 2052.

Woodside has been facing opposition from environmental groups and activist investors over their climate goals and massive investment into growth projects.

"Woodside is failing to feel enough pressure from financiers and investors, developing a new deepwater oil field while it enjoys the financial backing of (major banks) and almost every major Australian superannuation fund," activist-investor group Market Forces' acting CEO Will van de Pol told Reuters.

Reporting by Sameer Manekar in Bengaluru; additional reporting by Roushni Nair; Editing by Rashmi Aich

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