Woodside Energy Group (ASX: WDS) has confirmed a non-operated oil discovery at the Bandit prospect in the Gulf of America, roughly 125 miles off the Louisiana coast, in what could prove to be one of the more significant deepwater finds of 2026.
The Bandit-1 exploration well sits in Green Canyon Block 680 and is operated by Occidental Petroleum (NYSE: OXY). Chevron U.S.A. Inc. and Woodside Energy round out the partnership, holding 37.125% and 17.5% working interests, respectively.
What the Bandit-1 Discovery Revealed
The well encountered high-quality, full-to-base oil-bearing Miocene sands, a geological formation known for hosting commercially significant hydrocarbon accumulations across the deepwater Gulf.
All three partners are now jointly reviewing well results. A post-well evaluation is underway to determine the next steps, including whether the discovery can support a subsea tieback to an existing Occidental-operated platform nearby.
That tieback option is key. It would give the partners a cost-effective path to development without needing to build new standalone infrastructure, a significant advantage in deepwater economics.
Green Canyon Block 680, approximately 125 miles south of the Louisiana coast. [Mb50’s “Liquid Mud” Rant]
What Woodside’s Leadership Said
Mark Abbotsford, Woodside’s Executive Vice President and Chief Commercial Officer, described the result as further proof of the Gulf’s long-term appeal.
“This result highlights the quality of the US Gulf of America and the role it continues to play in delivering secure, reliable energy. Post-well studies are now underway, with co-owners jointly reviewing results. The Bandit-1 discovery also demonstrates the value of disciplined exploration in established basins with clear pathways to commercialisation,” he said.
Abbotsford also pointed to Woodside’s broader Gulf activity. In March 2026, Woodside was the successful bidder on two blocks in the Big Beautiful Gulf 2 Oil and Gas Lease Sale, building on eight leases awarded under the BBG1 sale held late in 2025.
That combination of new leases and a confirmed discovery paints a clear picture: Woodside is actively building out its Gulf of America footprint, not just participating.
Why Occidental and Chevron Are Equally Bullish
Occidental’s Jeff Simmons, Senior Vice President of Subsurface Technology, said the discovery reinforces the basin’s role as a strategic domestic supply source.
“We believe this discovery demonstrates the continued importance of the Gulf of America as a strategic source of reliable domestic oil supply,” he said.
Chevron’s Kevin McLachlan, Vice President of Exploration, was similarly direct. “Bandit demonstrates our exploration strategy in action and reinforces the high-quality opportunities in the prolific deepwater Gulf of America,” he said.
The consensus across all three operators is the same: the Gulf of America still has significant runway, and Bandit-1 is evidence of that.
The Strategic Case for Woodside in the Gulf
Woodside’s position in the Gulf of America is part of its broader strategy to grow a diversified international portfolio alongside its core Australian LNG business.
The Company’s growth strategy outlined at its 2025 Capital Markets Day identified North America as a key expansion corridor. Its Louisiana LNG project, led under former CEO Meg O’Neill before her departure to BP, remains a major pillar of that ambition.
Woodside’s recent leadership transition saw Liz Westcott step in as Acting CEO in December 2025. Bandit-1 is a timely result for management trying to demonstrate continuity and strategic momentum during that transition period.
With two new Gulf blocks added under the BBG2 lease sale and a confirmed oil discovery now in hand, the Company’s North American exploration pipeline looks considerably stronger heading into the second half of 2026.
Subsea Tieback: The Commercial Pathway
The potential subsea tieback to an adjacent Occidental platform is worth paying attention to. In deepwater exploration, the distance from a discovery to existing infrastructure is often the deciding factor in whether a find becomes commercial.
Green Canyon Block 680’s proximity to existing Occidental-operated facilities means that, if post-well studies confirm sufficient resource volume, the partners could advance a development concept without major new infrastructure spend. That keeps capital requirements manageable and the timeline potentially shorter than a standalone development.
Such an approach could support a lower-cost development pathway if further appraisal confirms commercial volumes.
No volume estimates have been disclosed at this stage. The focus right now is on post-well technical studies, and any resource or development announcements would follow from that work.
Investor Outlook
Woodside Energy Group (ASX: WDS) has been one of the stronger performers on the ASX this year, lifted in part by elevated global energy prices tied to ongoing geopolitical tensions. The Bandit-1 result adds an exploration catalyst to an investment case already supported by dividends and LNG production.
WDS Price chart [ASX]
Investors will now watch for post-well study results and any formal resource announcement from the Bandit-1 partnership. If appraisal work confirms a material resource, the subsea tieback concept could move quickly toward a development decision.
Also Read: Bendigo Bank Q3 Trading Update and New Partnerships
FAQ
Q: What is the Bandit-1 discovery?
A: The Bandit-1 discovery is an oil find made by Occidental, Chevron, and Woodside Energy at the Bandit prospect in Green Canyon Block 680 in the Gulf of America, about 125 miles south of the Louisiana coast. The well encountered high-quality oil-bearing Miocene sands.
Q: What is Woodside Energy’s stake in the Bandit discovery?
A: Woodside Energy holds a 17.5% working interest in the Bandit prospect. Occidental operates the well with a 45.375% interest, and Chevron holds 37.125%.
Q: What happens next after the Bandit-1 oil find?
A: Post-well technical studies are now underway. The three co-owners are jointly reviewing results to assess whether a subsea tieback to nearby Occidental infrastructure is commercially viable.
Q: How does Bandit-1 fit into Woodside’s Gulf of America strategy?
A: The Bandit-1 result builds on Woodside’s recently awarded leases in the BBG1 and BBG2 Gulf lease sales. The Company is actively expanding its Gulf of America portfolio as part of its broader North American growth strategy.
Q: Is the Bandit-1 discovery commercially significant?
A: No resource volumes have been confirmed yet. Commercial significance depends on the outcome of post-well appraisal studies, which are currently underway.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research before making investment decisions.
Source:
https://www.woodside.com/docs/default-source/media-releases/2026/bandit-1-discovery-off-louisiana.pdf
Last modified: April 10, 2026
