June 24 Chevron Corp has secured access to key infrastructure for its recently expanded position in the Permian basin around west Texas through a deal with Cimarex Energy Co.
Chevron, the second-largest U.S. oil company, said on Monday it signed a joint development agreement for 104,000 acres to be operated by Cimarex, while Chevron will pay $60 million for 50 percent of the smaller company's Triple Crown gathering system and a 50 percent interest in wells drilled this year.
"Our complementary acreage positions in west Texas and New Mexico, along with our common development outlook, make Chevron and Cimarex natural partners," said Alan Kleier, vice president of Chevron`s Mid-Continent division.
Chevron has a position in the Delaware basin part of the Permian exceeding 1 million "gross" acres, or including acreage that is only partially owned. Last September, Chevron bought 264,000 acres there from Chesapeake.
The eight-year agreement with Cimarex includes access to roads and utilities for development of the acreage in Culberson County, Texas.