Singapore acquisition delivers advantaged growth and synergies
ExxonMobil’s growth in the strategic aromatics business will be strengthened with the recent cost-competitive acquisition of Jurong Aromatics Corporation Pte. Ltd.’s plant, located on Jurong Island in Singapore. The plant, one of the largest in the world with an annual production capacity of 1.4 million tons of aromatics and 2.5 million tons of transportation fuels, presents operational and logistical synergies with ExxonMobil’s integrated refining and petrochemical complex nearby. “We have operated in Singapore for more than 120 years and remain one of the country’s largest investors,” said Karen McKee, senior vice president of basic chemicals, intermediates and synthetics for ExxonMobil Chemical Company. “The integration of the aromatics plant with our existing manufacturing facility will help us better serve our customers in key Asian growth markets.” “Our growth in Singapore is driven by the expected increase in global demand for chemical products over the next decade of nearly 45 percent, or about 4 percent per year, which is a faster pace than energy demand and economic growth,” said Neil Chapman, president of ExxonMobil Chemical Company. “Nearly three-quarters of the increased demand is expected to be in the Asia-Pacific as a result of its rising prosperity and growing middle class.”
ExxonMobil continues to increase Permian Basin acreage ExxonMobil has acquired companies previously owned by the Bass family of Fort Worth, Texas, more than doubling its Permian Basin resource to 6 billion oil-equivalent barrels. The assets acquired in February 2017 include an estimated resource of 3.4 billion oil- equivalent barrels in NewMexico’s Delaware Basin, a highly prolific oil-prone section of the Permian Basin. ExxonMobil Chairman and CEO Darren Woods said the high-quality properties are a major addition to ExxonMobil’s XTO Energy-managed unconventional liquids portfolio. “This acquisition strengthens ExxonMobil’s significant presence in the dominant U.S. growth area for onshore oil production,” Woods said. “This investment gives us an exceptional Delaware Basin position in a proven multistacked play that can generate attractive returns in a low-price environment.” The company also added another 22,000 acres to its Permian Basin portfolio through a series of acquisitions and acreage trades completed throughout mid-2017. This new acreage is located in the highly prolific, stacked oil pay zones of the Delaware and Midland Basins. ExxonMobil is currently producing more than 165,000 net oil-equivalent barrels per day across its Permian Basin leasehold. The company is one of the most active operators in the Permian Basin, and recently drilled its first 12,500-foot horizontal lateral length well in the Delaware Basin.
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