ExxonMobil has announced the revision of its Permian Basin growth plans to produce more than 1 million oil-equivalent barrels per day by 2024, an increase of nearly 80%.
The resources base of ExxonMobil in the Permian Basin is estimated to be approximately 10 billion oil-equivalent barrels and is expected to expand further as analysis and development activities continue.
ExxonMobil senior vice president Neil Chapman said: “We’re increasingly confident about our Permian growth strategy due to our unique development plans. We will leverage our large, contiguous acreage position, our improved understanding of the resource and the full range of ExxonMobil’s capabilities in executing major projects.”
“Our plans are attractive at a range of prices and we expect them to drive more value as we continue to lower our development and production costs.”
ExxonMobil’s Delaware Basin’s increased resource size, infrastructure development plans, and secured capacity to transport oil and gas to the company’s Gulf Coast refineries and petrochemical operations through the Wink-to-Webster, Permian highway and double E pipelines are set to support the company’s estimated increase in production.
The company’s key advantages in the Permian is its acreage position, which allows multi-well pads in large development corridors connect to the efficient gathering systems to reduce the development costs and accelerate the production growth.
ExxonMobil is building infrastructure to support volume growth. It plans to start construction at 30 sites to boost oil and gas processing, water handling and takeaway capacity from the basin.
The proposed central delivery facilities are designed to handle up to 600,000 barrels of oil and 1 billion cubic feet of gas per day and increased water-handling capacity through 350 miles of already-constructed pipeline.
Chapman added: “These investments support growth plans and ensure that as production levels continue to rise, we are well positioned in processing and transportation capacity.”
ExxonMobil is one of the most active operators in the Permian Basin with 48 drilling rigs currently in operation. The company targets to increase its rig count to approximately 55 by the end of the year.