South Korea’s HD Hyundai Heavy Industries Co., Ltd. said Monday in a stock exchange announcement that it had received a contract to build a floating production unit for a client in Mexico.
The contract, awarded by an oil developer in Mexico, is worth 1,566,300,000,000 KRW (around $1.18 billion). The FPU delivery is scheduled for April 1, 2027.
While the company did not say who the client was in its stock exchange announcement, South Korean Yonhap News Agency said Australia's Woodside placed the order for the 44,000-ton FPU, which will leave for an oil field 180 kilometers off the east coast of Mexico in the first half of 2027, and which will be able to produce 100,000 barrels of crude oil and 4.1 million cubic meters of natural gas per day
The details shared correspond to Woodside's recently sanctioned Trion development offshore Mexico.
Woodside last month made a final investment decision to develop the large Trion resource in Mexico. The first oil is targeted for 2028.
Woodside is the operator with a 60% participating interest, and PEMEX holds the remaining 40%.
The forecast total capital expenditure is US$7.2 billion (US$4.8 billion Woodside share, including capital carry of PEMEX of approximately US$460 million).
The project will target the development of an estimated 479 MMboe of Best Estimate (2C) Contingent Resource (100%) of oil and gas (287 MMboe 2C Contingent Resources, Woodside net economic interest).
Woodside said in June that the Trion field would be developed through a floating production unit (FPU) with an oil production capacity of 100,000 barrels per day. The FPU will be connected to a floating storage and offloading (FSO) vessel with a capacity of 950,000 barrels of oil.
Trion is located in a water depth of 2,500 meters, approximately 180 kilometers off the Mexican coastline and 30 kilometers south of the Mexico/US maritime border. Trion was discovered in 2012 by PEMEX. BHP Petroleum acquired an interest in 2017 which subsequently became part of Woodside’s portfolio in 2022.
Development of Trion will include the installation of an FPU, an FSO, and 18 wells (nine producers, seven water injectors and two gas injectors) drilled in the initial phase, with a total of 24 wells drilled over the life of the Trion project. The forecast total capital expenditure of US$7.2 billion includes all 24 wells. Gas that is not reinjected or used on the FPU will be shipped to the Mexican markets.