The acquisition is part of the company’s efforts to double its Permian Basin resource in Texas and New Mexico, to 6 billion barrels.

As part of the deal, Exxon Mobil will acquire the companies, which include the operating entity BOPCO.

The companies considered for acquisition hold about 275,000 acres of leasehold, and production capacity of more than 18,000 net oil equivalent barrels per day, Exxon Mobil said.

Exxon Mobil expects the acquisition to add 3.4 billion barrels of oil equivalent (Bboe) in New Mexico’s highly-prolific, oil prone section of the Permian Basin,

ExxonMobil chairman and CEO Darren Woods said: “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.

“The highly-contiguous position will provide significant cost advantages in developing 3.4 billion barrels of resource, of which 75% is liquids.

“By utilizing ExxonMobil’s technological strength coupled with its unconventional development capabilities we can drill the longest lateral wells in the Permian Basin, reducing development costs and increasing reserve capture.”

In Permian Basin, Exxon Mobil currently has production capacity of approximately 140,000 net oil-equivalent barrels per day.

Woods said that said the high-quality properties are a major addition to the company's unconventional liquids portfolio managed by its subsidiary, XTO Energy.

Image: Exxon Mobil intends to boost its onshore oil production in the Permian Basin, Texas, US. Photo: courtesy of suwatpo/