The big, excellent Trion deposit in Mexico will be developed, according to a final investment decision made by Woodside. The development’s anticipated returns will outperform the goals set forth in Woodside’s capital allocation methodology and will create lasting shareholder value. The first oil is anticipated around 2028.

The joint venture approval and regulatory approval of the field development plan (FDP), both of which are anticipated in the fourth quarter of 2023, are prerequisites for the development. With a 60% participating stake, Woodside is the operator, while PEMEX Exploración y Producción (PEMEX) owns the remaining 40%.

The development is anticipated to bring excellent returns to Woodside shareholders as well as economic and social advantages to Mexico. The projected total capital expenditure is US$7.2 billion (US$4.8 billion Woodside share plus US$460 million in capital carry of PEMEX).

The investment is anticipated to have a payback period of fewer than four years and an internal rate of return (IRR) of more than 16%.

Without the capital carry, the anticipated IRR exceeds 19%.

An estimated 479 MMboe of Best Estimate (2C) Contingent Resource (100%) of oil and gas will be the project’s primary focus, along with 287 MMboe of 2C Contingent Resources that are Woodside net economic interests.

Six well penetrations across the field and an intensive subsurface appraisal have helped Woodside better comprehend this substantial, high-quality conventional resource.

A floating production unit (FPU) with a daily oil production capability of 100,000 barrels will be used to develop the resource. The floating storage and offloading (FSO) vessel, which has a 950,000 barrel capacity, will be connected to the FPU.

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