2023-06-20 10:36:15 ET
Woodside Energy ( NYSE: WDS ) said Tuesday it made a final investment decision to proceed with the US$7.2B Trion joint venture deepwater oil project in the Gulf of Mexico, targeting first production in 2028.
Woodside ( WDS ), Trion's operator and owner of a 60% stake, said its share of development costs would total $4.8B, with the remaining expense taken on by Mexico's Pemex, which owns 40% of the venture.
The Australian company said it expects Trion, which contains estimated resources of 479M boe, will deliver an internal rate of return of more than 16%, with a payback period of less than four years.
Woodside ( WDS ) said it will develop Trion through a floating production unit with oil production capacity of 100K bbl/day, connected to a floating storage and offloading vessel with a capacity of 950K barrels of oil.
The Trion development plan, which is still subject to joint venture and regulatory approval, includes the installation of 18 wells drilled in the initial phase, with a total of 24 wells drilled over the life of the project.
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Woodside to move ahead with development of $7.2B Trion oilfield project