Australia’s Woodside Energy Group said on Tuesday it will invest in a $7.2 billion Gulf of Mexico oil project, noting that carbon emissions would be lower than the global average for deepwater production.
The company said in a filing on the stock exchange that the Tryon project will develop an estimated 479 million barrels of oil equivalent of oil and gas.
Woodside owns 60 percent of the project and will finance $4.8 billion of the cost, with Mexico’s state-owned company Pemex contributing the rest.
“The investment is in line with Woodside’s strategy, exceeds the targets of Woodside’s capital allocation framework and will be a strong cash flow contributor,” said CEO Meg O’Neill.
It added that the project would comply with the company’s emissions reduction targets.