MMEX Resources acquires land for new oil refinery in Texas, US
US-based development-stage company MMEX Resources has acquired 126 acres in Pecos County, Texas, for the construction of an oil refinery.
With the acquisition, the company plans to construct a 10,000 barrel-per-day (bpd) crude distillation unit situated on 15 acres near Fort Stockton, Texas.
The facility is the first phase of a planned $450m 50,000bpd refinery, which was announced in March this year.
MMEX Resources president and CEO Jack Hanks said: “The closing of our Phase I land site is a major milestone for the Pecos County refinery project and a catalyst for significant milestones to come, including the filing of environmental permits to authorise construction on our smaller-scale initial refinery.”
With plans to file necessary permits for the initial unit soon, the company expects to receive full permitting within 45 days of filing.
Once the permits are received, construction is expected to begin immediately and will be completed within 15 months.
Under the land sale agreement, the company is also set to purchase 350 acres next to the current acquired landholding for the construction of the Phase II refinery by January next year.
The combined land holding comprising both refineries will have room for storage and expansion.
In June this year, the company signed a $3m equity agreement to clear debts and arrange funding related to the construction expenses for the 10,000bpd initial unit.