The Woodside Energy Group Ltd (ASX: WDS) share price is pushing higher on Wednesday morning.
At the time of writing, the energy producer's shares are up almost 1% to $38.43.
Why is the Woodside share price rising?
There are a couple of reasons the Woodside share price is lifting on Wednesday.
The first is a rise in oil prices overnight amid concerns over the impact that Hurricane Idalia could have on supply from the US Gulf Coast.
In addition, this morning the company announced the receipt of regulatory approval for a major project.
According to the release, the Trion field development plan (FDP) has been approved by the Mexican regulator, Comision Nacional de Hidrocarburos (CNH).
As the company's final investment decision (FID) to develop the Trion resource was subject to this regulatory approval, the company can now push ahead with its plans.
And it has big plans!
What is Trion?
Trion is located in a water depth of 2,500 metres, approximately 180 km off the Mexican coastline and 30 km south of the Mexico/US maritime border.
BHP Group Ltd (ASX: BHP) acquired an interest in Trion in 2017 and then it became part of Woodside's portfolio in 2022 following the BHP-Woodside petroleum merger.
The resource will be developed through a floating production unit (FPU) with an oil production capacity of 100,000 barrels per day. Gas that is not reinjected or used on the FPU will be delivered to the domestic natural gas pipeline network by a subsea gas pipeline.
The forecast total capital expenditure is US$7.2 billion or A$11 billion (US$4.8 billion or A7.4 billion for Woodside's share) including all 24 wells.
Woodside's CEO, Meg O'Neill, commented:
This milestone allows us to fully progress into execution phase activities with our contractors. We look forward to working with PEMEX and our other stakeholders in Mexico to deliver this important project.
