PERTH, March 11, 2026, 05:35 AWST
Woodside Energy kicked off drilling at the Trion field alongside Pemex on Monday, moving its $7.2 billion deepwater oil venture in Mexican waters into the offshore phase. The company is still aiming for first oil by 2028. 1
The timing is key here—Woodside’s search for a new leader continues after Meg O’Neill stepped down in December and moved to BP. Over the weekend, Reuters flagged BHP Australia President Geraldine Slattery as a contender for the CEO job. The board, for its part, still expects to lock in a permanent hire sometime in the first quarter. 2
Woodside is balancing a slate of large-scale projects right now. Back in February, the company reported Trion’s progress at 50% by the end of 2025. Scarborough sat further along—94% done and still on schedule for its first LNG cargo in the fourth quarter. Louisiana LNG trailed, 22% complete, with a 2029 start in sight. Meanwhile, Australia’s Santos has told investors it sees production lifting as both Barossa and Pikka move ahead. 3
Woodside’s Trion project is set to drill 24 subsea wells, all routed back to a floating production vessel dubbed Tláloc. According to the company, Tláloc is rated for around 100,000 barrels a day. Oil from the unit will move into the Chalchi—another floating facility that can hold up to 950,000 barrels. 1
Transocean’s Deepwater Thalassa is set to handle the drilling. According to the company, the drillship arrived in Mexican waters on March 5. Supply ships and logistics support will operate out of Tamaulipas ports. 1
Acting CEO Liz Westcott described the kickoff as “a milestone for the Trion project,” adding that Woodside and Pemex remain concentrated on bringing the field online safely and efficiently. Westcott also believes Trion has the potential to bolster both Mexico’s energy security and local expertise. 1
Woodside Vice President Trion Stephane Drouaud said the team is “moving the project forward” with field activity picking up. The company has projected Trion could generate more than $10 billion in taxes and royalties for Mexico over the project’s lifespan. As Reuters has reported before, the field is on track to become Pemex’s first source of deepwater oil output. 1
Woodside gave the green light to the project last year, committing $4.8 billion for its portion of the spending. The company controls a 60% stake in Trion and runs operations, with Pemex owning the remaining 40%. This marked the first big move for Woodside following its merger with BHP’s petroleum business. 4
Trion matters for Mexico on more than just a single project. Reuters previously reported that advisers close to President Claudia Sheinbaum are eyeing it as a potential model for upcoming Pemex tie-ups, with the state oil giant seeking ways to boost reserves despite its hefty debt burden. 5
The real challenge still lies ahead. CFO Graham Tiver told analysts last month that 2026 is “very much a transition year” for Woodside, with the company preparing for a scheduled Pluto maintenance shutdown, ongoing Scarborough start-up work, and looking to offload another stake in its Louisiana LNG project to partners. KCM Trade analyst Tim Waterer noted the market sees this kind of deal as “de-risking the balance sheet” — a clear sign investors are zeroed in on timing and capital. 3
