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Oryx Midstream Services announces successful open season

Published by
World Pipelines,


Oryx Midstream Services has announced the successful completion of the open season commenced by its operating subsidiaries, Oryx Delaware Oil Gathering NM LLC, Oryx Delaware Oil Gathering TX LLC, Oryx Western Delaware Oil Gathering LLC and Oryx Delaware Oil Transport LLC (collectively, Oryx), supporting the development and construction of a new regional crude oil gathering and transportation system that will provide additional pipeline capacity across the Northern Delaware Basin. The new system will extend into Carlsbad, Eddy County, New Mexico and Lynch, Lea County, New Mexico, including a significant presence in the Stateline area of Texas and New Mexico.

The expanded Delaware Basin system will consist of more than 500 miles of new gathering and transportation pipeline with more than 1.5 million bbls of storage capacity, and ultimate throughput capacity of approximately 700 000 bpd. With this expanded reach, Oryx will serve production from every active county in the Delaware Basin, including Lea and Eddy Counties, New Mexico and Loving, Reeves, Ward, Pecos, Winkler and Culberson Counties, Texas.

Upon completion of the system, Oryx’s total Delaware Basin transportation capacity will ultimately exceed 900 000 bpd. The system will also provide crude oil quality segregation and batching capabilities through more than 2 million bbls of operational storage capacity to maintain the quality of multiple grades of crude oil streams across the company’s footprint. It will also expand its deliverability to major liquidity points across the Permian Basin. Construction on the new system is ongoing and Oryx expects to complete the initial phases of the project in the second half of 2018, with the system expansion expected to be completed in 2Q19.

Additionally, the successful open season resulted in Oryx significantly expanding its footprint across the Delaware Basin through the execution of new, long-term acreage dedications totalling approximately 300 000 acres in Eddy and Lea Counties, New Mexico and Loving and Reeves Counties, Texas. These new dedications bring the company’s total dedicated acreage to approximately 900 000 acres from more than 20 producers, making Oryx the largest, private midstream oil supply aggregator in the Delaware Basin.

“As the Delaware Basin continues to have the most compelling upstream economics and depth of inventory of any basin in North America, we see continued production growth in our focus area for decades to come. The results of our open season were resounding, as rapid growth has increased the need for access to gathering and storage capacity, and more efficient transportation logistics across the basin,” said Brett Wiggs, Oryx Midstream Services’ Chief Executive Officer. “Our new system and increased storage footprint will allow us to provide crude oil segregation and connectivity for our customers in Texas and New Mexico to multiple takeaway options, providing the market flexibility they need to maximise the value of their production.”

Read the article online at: https://www.worldpipelines.com/business-news/18092018/oryx-midstream-services-announces-successful-open-season/

 

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US pipeline news Crude oil pipeline news