Woodside and PEMEX Strengthen Deepwater Partnership in Mexico
Woodside Energy has announced the signing of a non-binding Memorandum of Understanding (MOU) with Petróleos Mexicanos (PEMEX), marking a further step in the companies’ strategic relationship and opening the possibility of additional collaboration in Mexico’s offshore oil and gas sector.
The agreement will enable Woodside and PEMEX to examine potential future opportunities related to the exploration and extraction of hydrocarbons in the deep waters of the Gulf of Mexico. In addition to assessing possible business opportunities, the MOU is designed to support the exchange of technical knowledge, operational experience and industry best practices between the two companies.
The agreement was signed in Mexico City following a meeting between Woodside Chief Executive Officer Liz Westcott and PEMEX Chief Executive Officer Juan Carlos Carpio Fragoso. The MOU builds on the companies’ existing cooperation through the Trion Oil Project, one of the most significant deepwater developments currently under construction in Mexico.
Under the new agreement, Woodside and PEMEX will have a framework for evaluating areas where their respective technical capabilities and operational experience could support future deepwater resource development. The Gulf of Mexico remains an important hydrocarbon-producing region, and the deepwater and ultra-deepwater areas of Mexico represent a significant opportunity for companies with the financial resources, technological expertise and operational capabilities required to undertake complex offshore projects.
Deepwater oil and gas developments involve some of the most technically demanding operations in the energy industry. Projects located far from shore and in water depths of several thousand metres require advanced subsea systems, specialised drilling technologies, floating production infrastructure and complex supply chain operations. Cooperation between experienced international operators and national energy companies can therefore play an important role in sharing expertise and supporting the development of major offshore resources.
The MOU between Woodside and PEMEX will facilitate the mutual exchange of technical knowledge and experience in these areas. It will also create opportunities for the companies to share industry practices developed through their operations in offshore exploration, drilling, project development and production.
Speaking at the signing of the agreement, Woodside CEO Liz Westcott said the MOU reflects the strength of the existing relationship between the two companies and supports the possibility of expanding their cooperation in Mexico.
“This MOU builds on the strong relationship between Woodside and PEMEX and our joint efforts to develop oil and gas resources in Mexico’s ultra-deepwater,” Westcott said.
“The agreement strengthens our relationship and opens the door to explore future opportunities to work together in Mexico’s deepwater. We are grateful to PEMEX and Secretary of Energy Luz Elena González Escobar for their continued support and commitment to the development of Mexico’s deepwater resources.”
The agreement comes as Woodside and PEMEX continue to advance the Trion Oil Project, which represents the centrepiece of their existing partnership in Mexico. The project is located approximately 180 kilometres offshore from Mexico’s coastline and around 30 kilometres south of the maritime border between Mexico and the United States.
Trion is situated in water approximately 2,500 metres deep and is expected to become Mexico’s first ultra-deepwater oil development. The scale and technical complexity of the project make it an important milestone for Mexico’s offshore energy industry.
Woodside holds a 60% participating interest in the Trion development and serves as the project operator. PEMEX holds the remaining 40% participating interest. The partnership combines Woodside’s experience in developing and operating large offshore projects with PEMEX’s long-standing role in Mexico’s energy industry.
As operator, Woodside is responsible for leading the development and execution of the project in coordination with PEMEX. The two companies are working together to advance the project toward production, with first oil currently targeted for 2028.
Progress on the development has continued, with Trion reported to be 64% complete as of 30 June 2026. The project represents a forecast total capital investment of approximately US$7.2 billion, highlighting the scale of the infrastructure, engineering and offshore systems required to bring the ultra-deepwater resource into production.
Large offshore developments such as Trion typically require years of planning, engineering and construction before production begins. Activities can include drilling and completing offshore wells, installing subsea equipment and pipelines, developing production and processing facilities, and establishing the logistics systems needed to support long-term operations.
The advancement of Trion is expected to contribute to Mexico’s broader efforts to develop its offshore hydrocarbon resources. While Mexico continues to expand its energy infrastructure across a range of technologies, domestic oil and gas production remains important to the country’s economy and energy system.
According to Woodside, the Trion project is expected to provide substantial economic benefits to Mexico throughout its operating life. The development is forecast to contribute more than US$10 billion in taxes and royalties to the Mexican government over the life of the project.
Beyond direct government revenues, major offshore developments can generate wider economic activity through engineering, construction, logistics, offshore services and other parts of the energy supply chain. Large-scale projects can also support the development of technical expertise and infrastructure associated with offshore energy production.
The Trion development is also expected to support Mexico’s energy security by adding a new source of domestic oil production. The development of major offshore resources can help strengthen national energy supply and provide additional production capacity as existing oil fields mature.
For Woodside, the project represents an important part of its international portfolio and its presence in the Americas. The company has extensive experience in developing large and technically complex energy projects, and its role as operator of Trion positions it at the forefront of Mexico’s emerging ultra-deepwater sector.
For PEMEX, the partnership provides an opportunity to work alongside an international operator on one of the country’s most technologically challenging offshore developments. The collaboration also supports the transfer and exchange of knowledge that may be valuable as Mexico considers future opportunities in deepwater exploration and production.
The newly signed MOU indicates that both companies see potential for their relationship to extend beyond the Trion development. Although the agreement is non-binding, it establishes a framework through which Woodside and PEMEX can analyse possible future opportunities and determine where additional cooperation may be commercially and technically beneficial.
Potential areas of collaboration could include the assessment of hydrocarbon resources in Mexico’s deepwater regions and the application of technical expertise developed through the companies’ respective operations. The agreement also provides a basis for continued discussions as the energy companies evaluate future developments in the Gulf of Mexico.
The timing of the MOU is particularly significant as construction and development activities at Trion continue to progress toward the planned start of production in 2028. The project is expected to demonstrate the potential for large-scale ultra-deepwater resource development in Mexico and could provide valuable operational experience for future offshore projects.
Mexico’s deepwater regions contain significant prospective hydrocarbon resources, but their development requires substantial investment and advanced technical capabilities. The high costs and operational complexity associated with ultra-deepwater projects mean that partnerships can play an important role in bringing together the financial strength, technology and experience necessary for successful development.
The continued relationship between Woodside and PEMEX therefore represents more than a single project partnership. Through Trion and the newly signed MOU, the companies are establishing a broader platform for cooperation in one of the most technically demanding areas of Mexico’s energy sector.
As Trion moves closer to completion and the companies begin examining additional possibilities under the MOU, the partnership could play an increasingly important role in the future development of Mexico’s deepwater oil and gas resources.
With Trion already 64% complete and first oil targeted for 2028, Woodside and PEMEX are focused on delivering Mexico’s first ultra-deepwater development while also exploring opportunities for further cooperation. The US$7.2 billion project remains a major investment in the country’s offshore energy industry, while the new MOU signals that both companies are looking beyond the current development toward potential future projects.
The agreement ultimately reinforces the strategic relationship between Woodside and PEMEX and highlights their shared interest in advancing responsible and technically sophisticated hydrocarbon development in Mexico’s deepwater regions. As the Trion project continues toward production, the partnership between the two companies could create additional opportunities to support Mexico’s offshore energy sector, strengthen domestic energy supply and develop the country’s ultra-deepwater resources.
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