Oryx Midstream Services, LLC Launches Binding Open Season for Oryx Trans Permian Pipeline System to Serve Southern Delaware Basin
Midstream Services, LLC announced today that one of its operating
subsidiaries, Oryx Southern Delaware Oil Gathering and Transport LLC
(collectively, “Oryx”), has launched a binding open season to obtain
volume commitments and/or acreage dedications to support the development
of the Oryx Trans Permian pipeline system (“OTP”), a new crude oil
gathering and transportation system to serve the liquids-rich southern
Delaware Basin in Texas. The binding open season commenced today,
September 30, 2015, at 8 a.m. CDT and is scheduled to conclude at 5 p.m.
CDT on October 29, 2015.
The OTP system is currently supported by five anchor shippers that
collectively will dedicate approximately 220,000 operated acres with an
area of mutual interest covering more than 1 million acres. Spanning
portions of Reeves, Ward, Pecos, Crane, Upton and Midland counties, the
OTP system will have an initial capacity of 160,000 barrels per day
(bpd) with the capability to be expanded to up to 220,000 bpd based on
customer demand. To support volumes for the current anchor shippers, the
system is expected to include more than 300 miles of gathering pipeline,
100 miles of 16-inch transmission pipeline and three storage terminals
with 300,000 barrels of leased or owned working storage capacity. The
terminals will be located near the Texas towns of Pecos, Crane and
Midland. The OTP system will provide access to two major interconnects
with delivery into Magellan’s Longhorn Pipeline and Enterprise’s Midland
Terminal, providing shippers with multiple takeaway options that will
reduce congestion in the region and create multiple market
opportunities. The system also will have several strategically located
truck unloading stations to facilitate the movement of trucked
production in the area. A map of the OTP system can be found here.
“With multiple production zones providing years of drilling inventory,
the southern Delaware Basin is expected to experience growing volumes
and a significant need for additional takeaway capacity. Oryx’s robust
OTP pipeline system provides our customers with flexibility, improved
flow assurance and multiple market choices, allowing them to fully
maximize the value of their production,” said Brett Wiggs, Oryx
Midstream Services’ chief executive officer. “As a Midland-based team,
the Permian Basin is our focus, and we look forward to continuing to
expand upon our relationships in the area and offering our customers an
even broader scope of midstream solutions.”
Construction has begun on the OTP system and will be completed in two
phases: the first phase with service to Crane expected to be operational
by early first quarter 2016 and the second phase with service to Midland
expected to be operational by the second quarter of 2016. Oryx plans to
design and construct the OTP system to accommodate all requests for
service pursuant to the terms of the open season.
The binding open season process provides potential shippers with the
opportunity to make volume commitments or acreage dedications to the OTP
system by executing long-term transportation contracts with Oryx.
Shippers that elect to make long-term commitments to the OTP project
during the open season will receive firm transportation service for
their committed volumes.
All requests for open season documents should be directed to Oryx’s
chief financial officer and vice president of business development, Karl
Pfluger at (432) 253-7767 or firstname.lastname@example.org.
All binding commitments must be received by 5 p.m. CDT on October 29,
About Oryx Midstream Services, LLC
Midland-based Oryx Midstream is focused on developing midstream
infrastructure in the Permian Basin in New Mexico and Texas. Led by an
experienced team with more than 200 years of experience in the oil and
gas industry, Oryx is dedicated to providing producers with solutions
and flexibility through a full suite of midstream services. Oryx is
supported by a consortium of capital providers including Quantum Energy
Partners, Post Oak Energy Capital, Wells Fargo Energy Capital, local
Midland investors and others who collectively have contributed
significant capital to the venture. For more information visit www.oryxmidstream.com.
About Quantum Energy Partners
Quantum Energy Partners is a leading provider of private equity capital
to the global energy industry, having managed together with its
affiliates more than $10.5 billion in equity commitments since
inception. For more information on Quantum, please visit www.quantumep.com.
For investor relations, please contact Michael Dalton at (713) 452-2000.
About Post Oak Energy Capital
Post Oak, which was established in 2006, is an energy-focused private
equity firm based in Houston. Its management team has executive
management experience and a broad network in the energy business as well
as significant expertise in private equity investments, operations,
development, finance, acquisitions and divestitures. The firm pursues
private equity investments primarily in the upstream sector of the oil
and gas industry in North America and, to a lesser extent, in oil field
services and related infrastructure. Post Oak works in close partnership
with operating management teams to build businesses, accelerate growth
and enhance shareholder value. Post Oak’s website is www.postoakenergy.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150930005478/en/
Copyright Business Wire 2015