Woodside Energy's Trion oil and gas project has received the necessary approval for its social impact assessment from the Mexican energy ministry.
The assessment, which was submitted in May 2023, details the project's comprehensive evaluation and Woodside's strategies to manage social impacts.
Trion, a joint venture between Woodside and Mexico's state-owned petroleum company PEMEX, is situated in the Perdido Fold Belt in the Gulf of Mexico.
Woodside, with a 60% stake, serves as the operator, while PEMEX holds the remaining 40%.
Located approximately 180km off the Mexican coastline and 30km south of the US/Mexico maritime border, the Trion field lies at a water depth of around 2,500m.
This greenfield development is set to produce Mexico's first deepwater oil, with the potential to integrate future discoveries into the Trion facilities.
The Trion field was initially discovered by PEMEX in 2012.
In 2017, BHP Petroleum, which later merged with Woodside, signed an agreement with PEMEX to develop the field.
Following the merger, Woodside continued the development agreement with PEMEX.
In June 2023, Woodside made a final investment decision on the Trion field development, committing $7.2bn (A$11.18bn) to the project.
The field is expected to commence operations in 2028, with an in-field floating production unit (FPU) designed for an oil production capacity of 100,000 barrels per day.
Production at the Trion oil field is anticipated to peak in 2031 and, based on economic assumptions, continue until the field reaches its economic limit in 2071.
It is estimated to yield around 479 million barrels of oil equivalent.
Woodside executive vice-president projects Matthew Ridolfi said: “This approval marks an important milestone on the pathway to developing this nationally significant resource project. We appreciate the ongoing support we have received from the Mexican Government for Trion.
“The approval also validates Woodside’s approach to how we engage with communities wherever we work and recognises our high operating standards."
Last week, Woodside and Santos concluded their discussions regarding a potential merger without an agreement.
The proposed merger, valued at approximately A$80bn, fell through due to disagreements over valuation after nearly two months of due diligence and negotiations.
