Exxon Mobil Corp. (NYSE: XOM) struck a partnership with Microsoft Corp. (NASDAQ: MSFT) to use the tech company’s cloud technology on its Permian Basin operations, which the Texas-based oil major said will generate billions of dollars in value over the next decade.

The partnership with Microsoft includes an integrated cloud environment that collects real-time data from the field to enable Exxon Mobil’s XTO Energy subsidiary to make faster and better decisions on drilling optimization, well completions and prioritization of personnel deployment.

The value of the agreement wasn’t disclosed but Exxon Mobil said it expects the technology could expand its Permian Basin production by as much as 50,000 barrels of oil equivalent per day (boe/d) by 2025.

The company also added that the application of Microsoft’s technologies across its Permian Basin acreage, which covers a 9.5 billion oil-equivalent barrel resource base and more than 1.6 million acres, represents the industry’s largest acreage position using cloud technology.

Alysa Taylor, corporate vice president of Microsoft Business Applications and Industry, said Exxon Mobil is taking a leadership approach in its digital strategy.

“Exxon Mobil is leading the way for industry, grounding their goals in making data-driven decisions that will result in safer operations for their employees and more profitable activities for the company,” Taylor said in a statement. “Our cloud infrastructure and business applications will continue to support Exxon Mobil as it fully realizes its strategy across the Permian.”

The application of Microsoft technologies by Exxon Mobil’s XTO Energy subsidiary includes Dynamics 365, Azure, Machine Learning and Internet of Things. The digital technology is a “fundamental enabler” for the company’s Permian development, said Staale Gjervik, senior vice president of Permian integrated development for XTO.

“Through our partnership with Microsoft, we’re combining our technical and engineering expertise with cloud and data analytics capabilities to develop the Permian resource in the most capital-efficient manner,” Gjervik said in a statement. “Collaboration with Microsoft is key to our future development efforts, which include predictive maintenance capacities, innovative tools for employees, and artificial intelligence and machine learning integration.”

Exxon Mobil has pledged to increase its Permian Basin production to 600,000 boe/d by 2025. The company’s fourth-quarter Permian production was 190,000 barrels of oil and gas per day.

Reuters contributed to this report. Emily Patsy can be reached at epatsy@hartenergy.com.

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