So here's a big move in the deepwater oil world: Woodside Energy Group Ltd. (WDS) announced on Monday that it's officially started drilling at the Trion Field. This isn't just any project—it's a major ultra-deepwater play in the Gulf of Mexico, and it's happening in partnership with Mexico's state-owned oil company, Petróleos Mexicanos (PEMEX).

Think of this as the physical follow-through on a decision made last year. The project got its Final Investment Decision (FID) in 2023, and now the drills are turning. It's a significant milestone, especially for Mexico's ambitions in deepwater oil and gas.

Why This Matters for Mexico

Woodside's Acting CEO, Liz Westcott, didn't mince words about the project's importance. "The start of the drilling program represents a milestone for the Trion Project and for Mexico's deepwater oil and gas sector," she said. "It underscores the strength of our collaboration with PEMEX and our shared commitment to delivering this world-class project safely and efficiently."

Translation: This is a big deal for the country's energy sector, and both companies are fully invested in making it work.

The Nitty-Gritty: Wells, Ships, and Barrels

So what exactly are they doing? The plan involves drilling 24 subsea wells. All that oil will flow to a floating production unit named Tláloc (yes, named after the Aztec rain god), which has a nameplate capacity of about 100,000 barrels per day.

From there, the oil moves to a floating storage and offloading facility called Chalchi, which can hold 950,000 barrels. The drilling itself is being handled by Transocean's drillship Deepwater Thalassa, which arrived in Mexican waters back on March 5. The supply logistics are running out of ports in Tamaulipas, which should give a nice boost to regional supply chains.

The Timeline and the Economic Impact

Woodside Vice President for Trion, Stephane Drouaud, gave credit where it's due. "The progress we are seeing at Trion reflects the dedication and expertise of our project team and partners who have worked tirelessly to advance this development," he said.

The project is reportedly on schedule, with first oil targeted for 2028. But the real story here might be the economic impact. Over the life of the project, Trion is expected to deliver more than $10 billion in taxes and royalties to Mexico. It's also expected to create direct and indirect jobs and expand opportunities for Mexican suppliers.

On the ownership side, Woodside holds a 60% participating interest and operates the project, while PEMEX holds the remaining 40%.

As for the stock, Woodside Energy shares were down 1.84% at $21.93 at the time of publication on Monday. Interestingly, the stock is trading near its 52-week high of $22.44, according to market data.