MMEX Resources of Fort Stockton has completed product sales for its proposed crude oil refinery complex in Pecos County. Jack W. Hanks, president and CEO, said July 1 that the company signed an agreement to sell naphtha to an international energy and trading company for delivery by rail to Texas Gulf Coast refinery and petrochemical markets. Agreements were signed earlier for the sale of diesel and residual fuel oil to be produced at the refinery and for logistics to move production to the Gulf Coast.
MMEX previously announced plans to build a refinery near Fort Stockton in two phases. Phase I will include a crude distillation unit of 10,000 barrels per day to produce diesel, naphtha and residual fuel oil. The full-scale crude oil refinery has been moved to Phase II and capacity doubled from the original 50,000 barrels per day to 100,000 b/d. Hanks said MMEX is proceeding with financing “on a very positive note.” Once MMEX issues a notice to proceed, Hanks said, engineering, procurement and construction will require 15 months before commercial operation.