IRVING, TEXAS (KWES) - ExxonMobil is acquiring companies' assets that include 250,000 acres in the Permian Basin and will double resources to 6 billion barrels.
The acquisition will have an upfront cost of $5.6 billion that will be paid in ExxonMobil shares. An additional contingent payment of $1 billion will be paid beginning in 2020 and ending no later than 2032.
"This acquisition strengthens ExxonMobil's significant presence in the dominant U.S. growth area for the onshore oil production," said Darren W. Woods, ExxonMobil chairman and chief executive officer. "This investment gives us an exceptional Delaware Basin position in a proven multi-stacked play that can generate attractive returns in a low-price environment."
Woods said the position will provide significant cost advantages in developing 3.4 billion barrels, of which 75 percent is liquids.