Woodside, Pemex eye new Gulf of Mexico deepwater oil & gas exploration opportunities

September 3, 2026, by Melisa Cavcic

Australian energy giant Woodside is forging a path with Mexico’s state-owned petroleum heavyweight Petróleos Mexicanos (Pemex) to hunt for potential deepwater hydrocarbon plays in the Gulf of Mexico under a non-binding memorandum of understanding (MOU).

Trion development concept; Source: Woodside

This non-binding MOU will allow Woodside and Pemex to analyse potential prospects for hydrocarbon exploration and extraction in the deep waters of the Gulf of Mexico, while facilitating the mutual exchange of technical knowledge, experience, and industry best practices in the oil and gas sector.

Liz Westcott, Woodside’s CEO, commented: “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.”

The MOU was signed in Mexico City following a meeting between the two companies’ chief executive officers (CEOs), Woodside’s Westcott and Pemex’s Juan Carlos Carpio Fragoso.

The two firms are jointly developing the Trion oil project, which is located approximately 180 kilometers off Mexico’s coastline and 30 kilometers south of the U.S.-Mexico maritime border.

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Lying in 2,500 meters of water, Trion is set to become Mexico’s first ultra-deepwater development, with first oil targeted for 2028. The project was 64% complete as at June 30, 2026, and represents a forecast total capital investment of $7.2 billion.

This development is expected to contribute more than $10 billion in taxes and royalties to Mexico over the life of the project, while enhancing energy security. Woodside is the operator and owns a 60% interest in Trion, with Pemex holding the remaining 40% stake.

The MOU with Woodside comes less than three months after the Mexican giant inked a memorandum of understanding with Petrobras to collaborate in the assessment, development, and joint execution of projects within the hydrocarbons industry.