ExxonMobil has unveiled plans to enhance total daily production up to three times by 2025 from its operations in the Permian basin in West Texas and New Mexico.
Through the plan, ExxonMobil intends to achieve daily production of more than 600,000 barrels of oil equivalent, as well as increase tight oil production from the Delaware and Midland basins by five times in the same period.
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Furthermore, the company is planning to invest more than $2bn on transportation infrastructure in order to support its Permian operations.
The proposed capital investments are driven by recent changes in the US corporate tax rate.
ExxonMobil subsidiary XTO Energy president Sara Ortwein said: “Our geographic and competitive advantages in the Permian position the company for strong growth and long-term value creation.
“We can deliver profitable production at a range of prices, and we have logistics and technology advantages over our competitors.”
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By GlobalDataThe increase in production is expected to be powered by reduced drilling costs, technology improvements and expanded acreage.
Over the next several years, the company intends to scale up the horizontal rig count in the Permian by a further 65%.
Last year, ExxonMobil acquired Bass companies for $6bn, adding an estimated resource of 3.4 billion barrels of oil equivalent.
The company recently acquired a crude oil terminal in Wink, Texas, to handle Permian crude oil and condensate from Delaware basin sources for transport to Gulf Coast refineries and marine export terminals.
ExxonMobil is also planning to expand the Wink terminal and add infrastructure upgrades.
