Woodside Energy Group Ltd (ASX: WDS) shares are having a better day that most on Wednesday.
In afternoon trade, the energy giant's shares are trading flat.
As a comparison, the ASX 200 index is currently down 1%.
Why are Woodside shares avoiding the selloff?
There are a couple of reasons why Woodside shares are faring well today. The first is an increase in oil prices overnight despite the hotter than expected inflation reading.
Another reason is that the company has released an announcement relating to the Trion oil and gas project in Mexico.
According to the release, the company has received approval for its Social Impact Assessment from the Mexican Ministry for Energy.
Woodside's Social Impact Assessment was submitted in May 2023. It provides a comprehensive assessment of the project and outlines the ways in which the company will manage social impacts.
Management believes that the approval is an important milestone for Trion. Woodside Executive Vice President of Projects, Matthew Ridolfi, said:
This approval marks an important milestone on the pathway to developing this nationally significant resource project. We appreciate the ongoing support we have received from the Mexican government for Trion.
The approval also validates Woodside's approach to how we engage with communities wherever we work and recognises our high operating standards. It reflects the excellent work of our technical team, our consultants, and the strong professional relationships we have established with Mexico's regulatory authorities.
What is Trion?
Trion is a greenfield development that would represent the first oil production from Mexico's deepwater once operational.
It is located in the Gulf of Mexico at a water depth of 2,500m, approximately 180km off the Mexican coastline.
It is being developed by Woodside Energy in a joint venture with PEMEX, with first oil targeted for 2028.
