is American compatriot Scheffler, the world number one, is three shots clear of England's Matt Fitzpatrick after both players completed seven-under rounds of 65.
Woods began Saturday with two bogeys before birdies at the third, sixth eighth and ninth - where he got up and down from a greenside bunker.
He had two bogeys and a birdie on the back nine, which included a seven-foot par putt miss at the 18th.
"It could have been a little bit better than the score indicates. I think I could have shot something in the high 60s today," said Woods, who shot 75 and 70 in his opening rounds.
Woods had fusion surgery on a bone in his ankle to address post-traumatic arthritis following the 2021 car crash that kept him out of golf for nearly 14 months.
He said recently that he had "zero issues" with the ankle, but other injury problems - including with his back - remain.
Woods hopes to play one tournament per month in 2024 and that this event will help to determine his schedule for next season.