USA | ExxonMobil has doubled its Permian Basin footprint through a new acquisition.
The company closed its acquisition of Pioneer Natural Resources Company. This will combine Pioneer’s sizable acreage, entrepreneurial culture and deep industry experience with ExxonMobil’s industry-leading project development capabilities.
The merger of ExxonMobil and Pioneer is set to create an unconventional business partnership with a sizeable high-return development potential, opening up exciting new opportunities for both companies.
The Permian Basin is the highest oil-producing sedimentary basin residing across two states in the south western part of the United States.
ExxonMobil’s Permian production volume will more than double to 1.3 million barrels of oil equivalent daily, and this number is expected to increase by 2027.
The acquisition will transition Pioneer’s 2050 net-zero Permian goal to a 2035 plan.
Combining Pioneer’s Permian inventory and basin knowledge with ExxonMobil’s proprietary technologies, financial resources, and industry-leading project execution excellence is expected to generate double-digit returns.
“This premiere, tier-one asset is a natural fit for our Permian portfolio and gives us a greater opportunity to deploy our technology and deliver operating and capital efficiency for long-term shareholder value,” said Darren Woods, ExxonMobil chairman and CEO.
“The combination of our two companies benefits this country’s energy security and economy and furthers society’s environmental ambitions as we move Pioneer’s 2050 net zero goal to a 2035 plan.”
ExxonMobil has set industry-leading plans to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian operations by 2030.
The company will also apply its industry-leading technologies to monitor, measure, and address fugitive methane emissions to reduce the emissions of both companies.
Additionally, ExxonMobil will use its combined operating capabilities and infrastructure to increase the amount of recycled water used in its Permian fracturing operations to more than 90 percent by 2030.
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