Exxon Mobil adds another purchase to its list; buys crude oil terminal in Texas

ExxonMobil Corporation announced that it has purchased a crude oil terminal in Wink, Texas from Genesis Energy LP. The terminal is located in the rapidly growing Delaware Basin, part of Permian Basin – one of the most prolific plays in the United States.

The terminal is strategically positioned to handle Permian Basin crude oil and condensate for transport to Gulf Coast refineries and marine export terminals. The facility is interconnected to the Plains Alpha Crude Connector pipeline system, and is permitted for 100,000 barrels per day of throughput with the ability to expand.

“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 Gerald Frey, president of ExxonMobil Pipeline Company.

“It also provides shippers with efficient and cost-effective access to market destinations in the Gulf region,” he said.

This purchase marks ExxonMobil’s first terminal in the Permian Basin to be anchored by the corporation’s newly acquired Delaware Basin acreage, previously announced in January.

In September, ExxonMobil announced that it had added 22,000 acres to its Permian Basin portfolio since May through a series of acquisitions and acreage trades. Located in the highly prolific, stacked oil pay zones of the Delaware and Midland Basins, the new acreage adds to the company’s existing 6 billion barrels of oil equivalent Permian Basin resource base.

The recent transactions represent important additions to ExxonMobil’s established core positions in the Delaware and Midland Basins. In February, ExxonMobil acquired 250,000 acres in the Delaware Basin from companies owned by the Bass family of Fort Worth. In the Midland Basin, the company has doubled its core operated acreage to more than 130,000 acres through multiple transactions over the last few years.

“We continue to build on our strong position in the Permian,” said Jack Williams, ExxonMobil senior vice president.

“Our leading presence in the Permian, from equity production through to Gulf Coast refining capacity, positions us well for the future,” he said.

ExxonMobil is one of the most active operators in the Permian Basin, currently operating 19 drilling rigs, 14 of which are drilling horizontal wells in the core Midland Basin, where the company has added 200 wells since mid-2014. The company also has four rigs drilling horizontal wells in the Delaware Basin of New Mexico, where the company recently drilled its first 12,500-foot horizontal lateral length well.