Water recycling firm Infinity Water Solutions LLC is extending a collaboration with a unit of ExxonMobil to improve water use in oil and natural gas activities in the Permian Basin’s Delaware subbasin in New Mexico.

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The multi-year contract with major Permian operator XTO Energy Inc., an ExxonMobil subsidiary, would preserve millions of barrels of water resources while also reducing downhole disposal, according to Infinity.

“By alleviating the industry’s need to depend on brackish water, Infinity is accelerating conservation rates and increasing New Mexico’s water security, sustainability and resiliency, a vision we’re materializing with each new contract,” said Infinity CEO Michael Dyson.

The Austin, Texas-based firm already works with XTO. Water gathered at...