13/05/2024 by Mark
US-based oil major ExxonMobil has completed its purchase of Pioneer Natural Resources, more than doubling its acreage in the Permian Basin as a result.
According to ExxonMobil, its outstanding record in executing projects, as well as its financial resources and in-house technologies, will combine well with Pioneer’s own knowledge of the Permian Basin and its substantial assets there.
It therefore expects to access greater resources in a more efficient manner with a reduced impact on the environment, ultimately leading to double-digit returns.
ExxonMobil, which also makes the Mobil SHC gear oil, now has access to around 16 billion barrels of oil equivalent in hydrocarbons through its 1.4 million net acres across the Midland and Delaware basins.
Based on last year’s output alone, ExxonMobil’s Permian production will increase to 1.3 million barrels of oil equivalent per day (boed), more than double its production last year. The company expects this to rise to 2 million boed by 2027.
Darren Woods, the CEO and Chairman of ExxonMobil, said that Pioneer’s assets were a good fit with its own portfolio of assets in the Permian Basin, adding that the acquisition:
“…gives us a greater opportunity to deploy our technology and deliver operating and capital efficiency for long-term shareholder value. The combination of our two companies benefits this country’s energy security and economy, and also furthers society’s environmental ambitions as we move Pioneer’s 2050 net zero goal to a 2035 plan.”
ExxonMobil says it will leverage its own plans and technologies to bring Pioneer’s target of net-zero Scope 1 and 2 emissions forward by 15 years.
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