ExxonMobil acquires crude oil terminal in Texas, US

ExxonMobil has acquired a crude oil terminal located at Wink, Texas, from Genesis Energy in a bid to cater to growing production in the Permian Basin.

The terminal is strategically located in the Delaware Basin, a part of the Permian Basin, and will enable ExxonMobil to manage the transport of crude oil and condensate to the Gulf Coast refineries and marine export terminals.

Interconnected to the Plains Alpha Crude Connector pipeline system, the oil terminal is permitted for 100,000 barrels per day of throughput and has scope for expansion.

ExxonMobil Pipeline Company president Gerald Frey said: “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.

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

The acquired facility represents the ExxonMobil’s first terminal in the Permian Basin.

In January, the company doubled its Permian Basin resource to six billion barrels of oil equivalent (boe) by acquiring multiple firms operating Bass family of Fort Worth, Texas.

The acquired companies held an estimated resource of 3.4 billion boe in the Delaware Basin.

For this acquisition, ExxonMobil agreed to make an upfront payment of $5.6bn in shares along with a series of additional contingent cash payments amounting up to $1bn.

The payment process will begin in 2020 and end no later than 2032.