Is Woodsides Trion Drilling the Next Big Move in Mexicos Offshore Oil Boom?
Source: Kapitales Research
Highlights:
Woodside begins drilling at Mexico’s Trion ultra-deepwater field
Project targets first oil in 2028 with 100,000 barrels/day capacity
Mexico could receive over US$10 billion in taxes and royalties
Woodside kicks off drilling at major offshore project
Woodside Energy Group Ltd (ASX: WDS) has officially started drilling operations at the Trion field in the Gulf of Mexico, marking a significant step forward for one of Mexico’s largest offshore oil developments. The milestone signals the transition from project planning to active development as the company works toward bringing the large-scale energy project into production. At the time of writing, Woodside Energy Group Ltd (ASX: WDS) shares were trading at AU$29.620, down AU$1.740 or 5.549 per cent.
The Trion development is being carried out in collaboration with Petroleos Mexicanos (Pemex), the state-owned oil producer of Mexico. Approved in 2023, the ultra-deepwater development is expected to deliver its first oil in 2028, highlighting its importance to both companies’ long-term production plans.
24 wells planned for ultra-deepwater development
As part of the project, Woodside and Pemex plan to drill 24 subsea wells in the Trion field. These wells will form the backbone of the development, extracting oil from deep offshore reservoirs beneath the Gulf of Mexico. The drilling work will be conducted using Transocean’s Deepwater Thalassa drilling rig, one of the advanced rigs designed for deepwater operations. The campaign will also rely on supply vessels and logistical support operating from ports in Tamaulipas, a coastal state in northeastern Mexico.
Floating production system to handle output
Oil produced from the wells will be transported to a floating production unit named Tlaloc, which is designed to process approximately 100,000 barrels of oil per day. Following processing, the crude will be sent to a floating storage and offloading (FSO) vessel designed to store roughly 950,000 barrels. Woodside currently holds a 60 per cent stake in the Trion development. The company estimates that over the life of the project, it could generate more than US$10 billion in taxes and royalties for Mexico, underlining its economic significance for the country’s energy sector.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), aare intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Is Woodsides Trion Drilling the Next Big Move in Mexicos Offshore Oil Boom?
Highlights:
Woodside kicks off drilling at major offshore project
Woodside Energy Group Ltd (ASX: WDS) has officially started drilling operations at the Trion field in the Gulf of Mexico, marking a significant step forward for one of Mexico’s largest offshore oil developments. The milestone signals the transition from project planning to active development as the company works toward bringing the large-scale energy project into production. At the time of writing, Woodside Energy Group Ltd (ASX: WDS) shares were trading at AU$29.620, down AU$1.740 or 5.549 per cent.
The Trion development is being carried out in collaboration with Petroleos Mexicanos (Pemex), the state-owned oil producer of Mexico. Approved in 2023, the ultra-deepwater development is expected to deliver its first oil in 2028, highlighting its importance to both companies’ long-term production plans.
24 wells planned for ultra-deepwater development
As part of the project, Woodside and Pemex plan to drill 24 subsea wells in the Trion field. These wells will form the backbone of the development, extracting oil from deep offshore reservoirs beneath the Gulf of Mexico. The drilling work will be conducted using Transocean’s Deepwater Thalassa drilling rig, one of the advanced rigs designed for deepwater operations. The campaign will also rely on supply vessels and logistical support operating from ports in Tamaulipas, a coastal state in northeastern Mexico.
Floating production system to handle output
Oil produced from the wells will be transported to a floating production unit named Tlaloc, which is designed to process approximately 100,000 barrels of oil per day. Following processing, the crude will be sent to a floating storage and offloading (FSO) vessel designed to store roughly 950,000 barrels. Woodside currently holds a 60 per cent stake in the Trion development. The company estimates that over the life of the project, it could generate more than US$10 billion in taxes and royalties for Mexico, underlining its economic significance for the country’s energy sector.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), aare intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au