Santa Fe Midstream LLC (Santa Fe) has announced plans to form a joint venture with Vermilion Cliffs Partners, LLC (Vermilion) to develop crude oil, natural gas and water midstream infrastructure in the Delaware Basin in Reeves and Culberson counties in west Texas. Vermilion will contribute a 20 in. natural gas pipeline and associated facilities in Culberson County and dedicate acreage to the joint venture. Santa Fe will supply the additional capital required to construct gathering pipelines as well as a new 200 million ft3/d cryogenic gas processing plant in Culberson County. Santa Fe will be the operator of the midstream assets.
Due to the ongoing growth and development of the Delaware Basin, significant capital investment in new midstream infrastructure is needed in Reeves and Culberson counties. The Santa Fe-Vermilion joint venture will offer natural gas gathering and processing, crude oil gathering and produced water gathering to disposal wells for producers in the Delaware Basin. Natural gas residue will be delivered to downstream interstate and intrastate pipelines serving Mexican, Western US and Texas markets and NGL’s will be delivered to pipelines for transportation and fractionation at Mont Belvieu, Texas. These facilities will meet a critical need for midstream services in the rapidly expanding central and southern sections of the Delaware Basin.
“This joint venture will provide superior midstream solutions for producers in Culberson and Reeves counties,” said Santa Fe’s Founder and Managing Partner, Amer Rathore. “In addition, we look forward to working with Vermilion Cliffs Partners to utilise their vast experience in both the upstream and midstream sides of the business,” said Cliff Rupnow, Santa Fe’s Managing Partner and VP of Commercial.
Jeff Cook, a founding partner of Vermilion, said: “The Santa Fe-Vermilion midstream joint venture is well positioned to deliver exceptional service and flexibility for producers in the southern Delaware Basin. Vermilion Cliffs Partners is honoured to join the fine team at Santa Fe Midstream to pursue this venture.”
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/24012017/santa-fe-midstream-and-vermilion-cliffs-partners-plan-for-potential-jv/