Oryx Midstream Services II, LLC Launches Binding Open Season for Regional Crude Oil Gathering and Transportation System in the Delaware Basin
Oryx
Midstream Services II, LLC announced today that 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”), have launched a joint
binding open season to secure volume commitments and/or acreage
dedications to support the previously-announced
regional crude oil gathering and trunk line transportation systems,
which will serve the liquids-rich Delaware Basin in Texas and New
Mexico. The binding open season commenced today, July 10, 2018 at 8 a.m.
CDT and is scheduled to conclude at 5 p.m. CDT on August 9, 2018.
Based on customer demand, Oryx has expanded the scope of the original
project to include additional capacity and a larger footprint across the
Delaware Basin. The new system is expected to consist of approximately
400 miles of new gathering and transportation pipeline, with
approximately 650,000 barrels per day of throughput capacity and more
than 1.5 million barrels of storage capacity. The new gathering and
transportation system will span the Delaware Basin and is expected to
provide services to Lea and Eddy counties in New Mexico and Loving,
Reeves, Ward, Winkler and Culberson counties in Texas. A map of the new
system can be found here.
Construction on the new system has begun and the regional transportation
pipeline, which will connect Oryx’s Carlsbad station to the Crane and
Midland market hubs, is expected to be fully commissioned during the
fourth quarter of this year. The full system is expected to be complete
in the second quarter of 2019. Upon completion, and when combined with
Oryx Midstream Services, LLC’s assets (operated by Oryx Southern
Delaware Oil Gathering and Transport LLC), Oryx’s total Delaware Basin
system capacity will exceed 850,000 barrels per day.
“We are pleased to launch this open season to support the construction
of incremental transportation and gathering capacity in the rapidly
expanding Delaware Basin. The new system extension and storage footprint
allows us to provide crude oil segregation and connectivity for our
customers in the Texas and New Mexico areas of the northern Delaware
Basin to multiple takeaway options, providing the flexibility and market
opportunities they need to maximize the value of their production,” said
Brett Wiggs, Oryx Midstream Services’ chief executive officer. “Rapid
production growth has increased the need for access to gathering
capacity and more efficient transportation logistics across the basin.
We are focused on the execution of this project in the proposed
timeframe to provide our customers with much-needed relief from rate
variability and administrative and operational burdens associated with
trucking alternatives.”
Open Season Information
The binding open season process provides potential shippers with the
opportunity to make volume commitments or acreage dedications to Oryx
Delaware Oil Gathering NM LLC, Oryx Delaware Oil Gathering TX LLC and
Oryx Western Delaware Oil Gathering LLC and or Oryx Delaware Oil
Transport LLC by executing gathering and/or transportation services
contracts with Oryx. Shippers that elect to make commitments to Oryx
Delaware Oil Transport LLC during the open season for movements on the
trunk line will receive firm transportation for their committed volumes.
Shippers that elect to make commitments to Oryx Delaware Oil Gathering
NM LLC, Oryx Delaware Oil Gathering TX LLC and or Oryx Western Delaware
Oil Gathering LLC during the open season for movements on any of the
gathering systems will receive firm gathering service for their
committed volumes. Shippers that receive firm service will be required
to pay a premium rate compared to the rate offered to similarly-situated
walk-up shippers.
A copy of the Open Season notice, which provides a high-level summary of
the key terms set forth in the gathering and transportation services
contracts can be found at Oryx’s website http://www.oryxmidstream.com/customer-center.
Copies of the Open Season procedures and the gathering and
transportation services contracts will be available to interested
shippers upon the execution of a confidentiality agreement, a copy of
which shall be provided upon request. Any such requests should be
directed to Oryx’s senior vice president of business development, Carlos
Mata at (432) 253-7756 or cmata@oryxmidstream.com.
All binding commitments must be received by 5 p.m. CDT on August 9, 2018.
About Oryx Midstream Services II, LLC
Midland-based Oryx Midstream II is focused on developing midstream
infrastructure in the Permian Basin in New Mexico and Texas. Led by an
experienced team with more than 160 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 $15 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.
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