Earlier this month, the Australian firm Woodside Energy confirmed an investment of US $11.7 billion in the development of a deepwater oil field off the coast of the northeastern state of Tamaulipas, Mexico. 

The Trion oil field, located 180 km east of Matamoros, is expected to produce 110,000 barrels per day (bpd) of crude and 2.5 million cubic meters of gas a day beginning in 2028.

The ultra-deepwater oil field is a joint venture between Woodside Energy, which holds the 60% operating stake, and the state-owned oil company Pemex, which owns 40%.  

Woodside Energy recently acquired the Houston, Texas-based liquefied natural gas developer Tellurian, including its Gulf Coast LNG export project, for US $1.2 billion including debt.

The project is expected to help bolster Mexico’s energy security as well as support economic development in the region. Matamoros, Tamaulipas, is well-known for its oil and manufacturing industries. The city exported $6.74 billion worth of products to the United States in 2023, the Economy Ministry reported, and is steadily increasing its exports to other parts of the world, including Spain and Canada. 

During a celebratory event in Mexico City for the project, the Australian Ambassador to Mexico, Rachel Moseley, said that the investment demonstrated Woodside’s commitment to Mexico’s energy development. 

The CEO of Woodside Energy, Meg O’Neil, expressed her gratitude for the warm welcome to Mexico and emphasized the positive impact she expects the project to have on the country, as well as on local communities. 

Representative for Tamaulipas in Mexico City Alejandro Rábago Hernández said that Woodside’s investment will position the state as a major energy power, support the creation of new high-quality jobs and bolster the local economy. He also expressed hope that the project would support the government’s energy transition efforts.  

Mexico’s President Claudia Sheinbaum recently announced that the government would be introducing a new national energy strategy, which will support an accelerated green transition.

The plan is expected to cap national oil production at 1.8 million bpd,  to support the target of producing 45% of the country’s electricity from renewable energy sources by 2030. Sheinbaum’s will be the first plan at the federal level to focus on a green transformation of the energy sector.  

With reports from Cluster Industrial, Reuters, Wired and Milenio