Woodside OKs multi-billion dollar investment on deepwater Trion Field
Woodside Energy Group, Australia’s largest independent oil and gas (O&G) company, made FID (final investment decision) to develop the ultra-deepwater Trion play in the Gulf of Mexico on June 19. With the decision, Woodside greenlights its first major investment since incorporating BHP Billiton’s oil and gas assets in June 2022.
The company estimates a total US$7.2 billion of needed investment for the project, with its own investors footing around US$4.8 billion. Woodside holds a 60% stake in Trion, while Pemex Exploration & Production (PEP), the E&P arm of Mexico’s national oil company Pemex, retains the remaining 40% interest in the project.
With respect to the announcement, George Baker – a Houston-based, veteran, O&G industry analyst - told Miranda Intelligence that the deal could at least result in the first Pemex-associated barrel of oil drawn from deepwater (DW) reserves, following the billions of dollars already attempted in previous projects, most of which are abandoned. The eventual income, he added, will largely go to taxes collected by Mexico’s finance ministry.
Baker added, however, “As for the upside, getting the first deepwater reservoir into production validates the geology, and more reservoirs will follow.”
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