Australian energy giant Woodside has entered into a non-binding memorandum of understanding (MoU) with Mexico’s state-owned petroleum company Petróleos Mexicanos (Pemex) to pursue potential deepwater oil & gas exploration opportunities in the Gulf of Mexico. The strategic accord represents a significant step forward in expanding hydrocarbon exploration initiatives across Mexico’s ultra-deepwater regions.
The MoU was signed in Mexico City after a meeting between the chief executive officers (CEOs) of the two companies, Woodside’s Westcott and Pemex’s Juan Carlos Carpio Fragoso.
Under the terms of the Gulf of Mexico deepwater oil exploration MOU, both organizations will conduct comprehensive analysis of potential hydrocarbon prospects suitable for development in the Gulf of Mexico’s deep waters. The agreement also encompasses the exchange of technical expertise, operational knowledge, and industry best practices between the two energy companies, fostering a collaborative approach to offshore resource development.
Strategic Partnership and Leadership Support
Liz Westcott, Woodside’s CEO, said, “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. 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,” he added.
Current Joint Development: Trion Oil Project
The two companies are currently collaborating on the Trion oil project, a landmark ultra-deepwater development located approximately 180 kilometers offshore Mexico’s coast and 30 kilometers south of the U.S.-Mexico maritime boundary. Operating at depths of 2,500 meters beneath the ocean surface, Trion is positioned to become Mexico’s inaugural ultra-deepwater oil development, with initial production targeted for 2028.
As of 30th June 2026, the Trion project had achieved 64% overall completion, with a projected total capital investment of $7.2 billion throughout its development lifecycle. Woodside operates the project and maintains a 60% ownership interest, while Pemex retains a 40% stake in the venture.
Significant Economic and Energy Impact
The Trion development is anticipated to generate substantial economic benefits for Mexico, with projections indicating over $10 billion in combined taxes and royalties throughout the project’s operational lifespan. Beyond financial contributions, the Gulf of Mexico deepwater oil and gas development is expected to strengthen Mexico’s energy security positioning and domestic energy supply capabilities.
