Woodside's Trion Field Development Plan Approved by Mexican Regulator

Source: www.gulfoilandgas.com 8/30/2023, Location: South America

The Trion field development plan (FDP) has been approved by the Mexican regulator, Comision Nacional de Hidrocarburos (CNH).

Woodside’s final investment decision (FID) to develop the Trion resource, announced 20 June 2023, was subject to Trion joint venture approval and regulatory approval of the FDP.(1) Both of these conditions have now been met.

Woodside CEO Meg O’Neill welcomed the approval of the FDP.

'This milestone allows us to fully progress into execution phase activities with our contractors. We look forward to working with PEMEX and our other stakeholders in Mexico to deliver this important project,' she said.

Following the approval of the FDP, Woodside has booked Proved (1P) Undeveloped Reserves of 324.7 MMboe gross (194.8 MMboe Woodside share) and Proved plus Probable (2P) Undeveloped Reserves of 478.7 MMboe gross (287.2 MMboe Woodside share).(2)

The project execution phase activities are progressing and Woodside has executed key contracts relating to the development including:

- the floating production unit (FPU) engineering, procurement and construction (EPC) contract with HD Hyundai Heavy Industries

- the rig contract with Transocean

- the FPU and floating storage offloading (FSO) installation contract with SBM Offshore

- the subsea trees contract with OneSubsea UK.

First oil is targeted for 2028. Woodside is operator of the Trion development with a 60% participating interest and PEMEX Exploración y Producción (PEMEX) holds the remaining 40%

About Trion
> Trion is located in a water depth of 2,500 m, approximately 180 km off the Mexican coastline and 30 km south of the Mexico/US maritime border. Trion was discovered in 2012 by PEMEX. BHP Petroleum acquired an interest in 2017 which subsequently became part of Woodside’s portfolio in 2022. The resource will be developed through a FPU with an oil production capacity of 100,000 barrels per day. The FPU will be connected to a FSO vessel with a capacity of 950,000 barrels of oil. Crude is expected to be shipped to international markets and the development is expected to include 18 wells (nine producers, seven water injectors and two gas injectors) drilled in the initial phase, with a total of 24 wells drilled over the life of the Trion project. Gas that is not reinjected or used on the FPU will be delivered to the domestic natural gas pipeline network by a subsea gas pipeline. The forecast total capital expenditure is US$7.2 billion (US$4.8 billion Woodside share including capital carry of PEMEX of approximately US$460 million) including all 24 wells.(3)

1- 'Woodside approves investment in Trion development', announced 20 June 2023.

2- 1P and 2P Reserves estimates include 12.6 MMboe gross (7.6 MMboe Woodside share) and 15.2 MMboe gross (9.1 MMboe Woodside share) of fuel consumed in operations respectively.

3- Woodside share assumes Woodside equity of 60% in Trion. Total capital expenditure excludes the forecast lease amount for the FSO unit.





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