Terminal acquisition bolsters ExxonMobil's Permian acreage

By Patrick C. Miller | October 24, 2017

ExxonMobil has acquired the first terminal in the Permian Basin anchored by its newly acquired Delaware Basin acreage.

The company announced last week that it acquired a crude terminal in Wink, Texas, from Genesis Energy LP. The terminal is located in the rapidly growing Delaware Basin of the Permian Basin.

ExxonMobil said the terminal—permitted for 100,000 barrels per day with ability to expand—establishes the company as a key midstream provider in the Permian Basin while providing transportation and storage options for producers.

According to ExxonMobil, the terminal is strategically positioned to handle Permian Basin oil and condensate for transport to Gulf Coast refineries and marine export terminals. The facility is interconnected to the Plains Alpha Crude Connector pipeline system.

“The terminal provides crude producers with a full range of logistical options including truck, rail and inbound and outbound pipeline access, not only for ExxonMobil’s production, but for all Permian Basin producers,” said Gerald Frey, ExxonMobil Pipeline Co. president. “It also provides shippers with efficient and cost-effective access to market destinations in the Gulf region.”

In January, ExxonMobil announced that it would more than double its Permian Basin resource to 6 billion barrels of oil equivalent through the acquisition of companies owned by the Bass family of Fort Worth, Texas. The acreage had estimated resources of 3.4 billion barrels of oil equivalent in New Mexico’s Delaware Basin. 

Based in Houston, Genesis Energy is a limited partnership providing midstream energy infrastructure and logistics services. Its operations are primarily focused in the U.S. Gulf Coast region, including Texas, Louisiana, Arkansas, Mississippi, Alabama and Florida, as well as Wyoming and the Gulf of Mexico.