FX.co ★ Exxon in talks to buy shale rival Pioneer

Major oil company Exxon Mobil is currently in talks to acquire Pioneer Natural Resources. The deal is valued at $60 billion, Reuters reports.

According to analysts, the acquisition would be the biggest for Exxon since its $81 billion purchase of Mobil in 1998 and would help it expand its presence in the Permian basin. Notably, this field is one of the most prolific ones in the United States. It is considered a highly cost-effective oil field thanks to the relatively low cost of oil and gas extraction.

Pioneer with a market cap of around $50 billion is the third-largest oil producer in the Permian basin after such giants as Chevron Corp. and ConocoPhillips.

Exxon, which is valued at $436 billion, is the largest oil producer in the United States. The corporation produces an average of 3.8 million barrels of oil equivalent daily. The acquisition of Pioneer would empower Exxon and grant it access to developed oil-producing areas.

Experts view the potential merger as beneficial to Exxon Mobil. Otherwise, it would have to risk its money and develop unproven fields. In case of successful negotiations, the deal between Exxon and Pioneer could be sealed in the coming days.