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American Mud Pumps

New Woodside's $7.2 billion project for oil production in Mexico

The company Woodside Energy Group plans to invest in the deep waters of the Gulf of Mexico, specifically in the Trion field, which is estimated to have resources of 479 million barrels of oil and is expected to begin production by 2028, with a projected floating production rate of 100,000 barrels of oil per day.


Last year, Woodside Energy Group acquired the BHP Group's oil business, and on Tuesday, they announced this investment at their headquarters in Perth. Along with the announcement, they mentioned their intention to explore potential acquisitions in the Gulf of Mexico.


According to Chief Executive Meg O'Neill, "We have considered a variety of oil demand forecasts and believe that Trion can help meet the world's energy requirements." She added that it is anticipated that two-thirds of the oil resources in Trion will be extracted within the first 10 years after start-up, as reported by El Financiero.


Woodside Energy Group inherited a 60 percent stake in Trion from BHP, and they estimate their investment at $4.8 billion. The remaining funds will be financed by the state oil company PEMEX, which owns 40% of Trion. Thus, authorization from PEMEX and regulatory approval are expected for the project to proceed.


In addition to the investment in Mexico, Woodside is developing the extensive Scarborough gas field off the coast of Western Australia and has plans for other oil and gas projects. The company also intends to invest in the production of clean hydrogen, El Financiero informed.


Woodside Energy Group will invest in oil extraction in the Gulf of Mexico
Oil extraction in Gulf of Mexico

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