ExxonMobil buys carbon capture entity for $4.9 bln
IRVING, July 14, 2023 – ExxonMobil has acquired CCS and enhanced oil recovery entity Denbury for USD 4.9 billion, the American energy giant announced on Thursday.
Under the deal, ExxonMobil will obtain the largest owned and operated carbon dioxide pipeline network in the USA, stretching around 2,090 kilometres, and ten onshore sequestering sites.
The pipeline network includes almost 1,500 kilometres of pipeline in Louisiana, Texas and Mississippi.
ExxonMobil will also acquire oil and gas operations in the Gulf Coast and Rocky Mountain region that together produce 47,000 boepd. The concessions contain more than 200 million boe in proven reserves.
The acquisition is expected to allow for more than 100 million tonnes per year of carbon emissions reductions for ExxonMobil.
“The breadth of Denbury’s network, when added to ExxonMobil’s decades of experience and capabilities in CCS, gives us the opportunity to play an even greater role in a thoughtful energy transition, as we continue to deliver on our commitment to provide the world with the vital energy and products it needs,” said Darren Woods, chairman and CEO of ExxonMobil.
ExxonMobil plans to reduce its total carbon intensity by 20-30% by 2030 from 2016 levels.
The company aims to achieve net-zero emissions from scope 1 and scope 2 greenhouse gases from its operated assets by 2050.