ExxonMobil makes huge $5.6 billion Permian Basin oil purchase

ExxonMobil makes huge $5.6 billion Permian Basin oil purchase

American oil major ExxonMobil (NYSE:XOM) has announced it will more than double its oil reserves in the Permian Basin following a US$5.6 billion acquisition of companies owned by the Bass family of Fort Worth, Texas.

The Delaware Basin, an oil-rich area of the Permian Basin, located in the American state of New Mexico, contains an estimated 3.4 billion barrels of oil, which will soon belong to ExxonMobil.

ExxonMobil will pay an upfront fee of $5.6 billion in company shares, followed by a series of cash payments totalling up to $1 billion between 2020 and 2032.

The multi-billion acquisition will push the multinational firm’s total oil resources in the Permian Basin to 6 million barrels.

Roughly 18,000 net oil equivalent barrels per day are currently produced at the basin by the acquired companies, which include the operating entity BOPCO.

Darren W. Woods, ExxonMobil chairman and chief executive officer said: “This acquisition strengthens ExxonMobil’s significant presence in the dominant U.S. growth area for onshore oil production.

“This investment gives us an exceptional Delaware Basin position in a proven multi-stacked play that can generate attractive returns in a low-price environment.”