Exxon Mobil doubles down on fossil fuels with £50bn acquisition
Exxon Mobil is in talks to buy a major US rival for £50bn as it doubles down on fossil fuels.
In a move likely to raise eyebrows among the green lobby, the US multinational oil giant is closing in on acquiring Pioneer Natural Resources.
The acquisition would be Exxon’s biggest since it bought Mobil for £66bn in 1998 and would expand its footprint in one of the US’s most lucrative oil regions.
In the spotlight: Exxon Mobil nears acquisition of Pioneer Natural Resources
Pioneer is the third largest oil producer in the Permian Basin after Chevron and ConocoPhillips.
The basin, which stretches across parts of Texas and New Mexico, is the most coveted by the US energy industry because of the relatively low cost of producing oil and gas.
If the talks are successful, a deal between Exxon and Pioneer could be reached in the coming days, according to Reuters. Spokesmen for Exxon and Pioneer declined to comment.
Exxon is the largest oil producer in the US with an average of 3.8 million barrels per day from its global operations. Profits hit a record £45 billion last year thanks to high oil and gas prices.
Acquiring Pioneer would give Exxon more established oil land that it could rely on to increase production when needed, rather than risking its cash on developing unproven acreage.
Each deal is intended to attract political and regulatory scrutiny.
In February, the White House accused Exxon of making big profits at the expense of consumers.