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ExxonMobil Corp. has snapped up its first crude oil terminal in West Texas within the Permian Basin to anchor its growing position in the Delaware formation.
The deal with Genesis Energy LP for an undisclosed amount would give ExxonMobil a facility able to handle crude oil and condensate for transport to Gulf Coast refineries and marine export terminals.
“The terminal provides crude producers with a full range of logistical options including truck, rail and inbound and outbound pipeline access, not only for ExxonMobil’s production, but for all Permian Basin producers,” said ExxonMobil Pipeline Co. President Gerald Frey. “It also provides shippers with efficient and cost-effective access to market destinations in the Gulf region.”
The Genesis terminal interconnects to the Plains Alpha Crude Connector and is permitted for 100,000 b/d of throughput, with the ability to expand. Plains All American Pipeline LP in January bought Alpha Holding Co. LLC, which serves Delaware oil producers through the Alpha Crude Connector, from owners Concho Resources Inc., a big Permian producer, and Frontier Midstream Solutions LLC.
ExxonMobil’s Permian leasehold continues to expand. Earlier this year it struck a deal valued at close to $6.6 billion that more than doubled its Permian resource, adding 275,000 acres total, mostly in New Mexico’s Delaware sub-basin. The transaction with the legendary Bass family of Fort Worth, TX, increased the operator’s estimated resource by around 3.4 billion boe.
Since then, ExxonMobil has added about 22,000 more acres to its Permian resource base through a series of acquisitions and trades, it disclosed last month. The newest additions were in the Delaware and its twin, the Midland sub-basin, which together added to an estimable 6 billion boe Permian resource base.
The Permian is the supermajor’s No. 1 U.S. onshore target. ExxonMobil was running 19 rigs in the Permian as of September, with 14 working the Midland and four in the Delaware.