Oryx Midstream to build regional crude oil transport pipeline in Delaware Basin
MIDLAND, Texas — Oryx Midstream Services II, LLC announced that it will build a new regional crude oil transportation pipeline serving the Delaware Basin with initial capacity of up to 400,000 bpd.
Oryx II recently closed on a long-term regional oil transportation agreement with WPX Energy and other producers bringing total acres committed to Oryx II to approximately 300,000 dedicated acres. When combined with Oryx Midstream Services, LLC (Oryx I), the total Oryx Delaware basin dedication footprint and system capacity will be in excess of 850,000 acres and 600,000 bpd, respectively.
Construction will begin immediately on the new 220-mi regional transport line that will provide receipt points from the Carlsbad, Stateline, Pecos and Pyote areas, and deliver crude to Crane and Midland, Texas. The system, comprised of 16-, 20- and 24-in. lines, will have an initial capacity of up to 400,000 bpd with the ability to expand based on shipper needs. It will serve production from every active county in the Delaware Basin including Lea and Eddy counties in New Mexico and Loving, Reeves, Ward, Pecos, Winkler and Culberson counties in Texas. The new crude oil pipeline will be constructed in phases and is expected to be in full service by the end of 2018.
Oryx I was launched in 2014 by an initial equity commitment totaling up to $300 MM from Quantum Energy Partners, Post Oak Energy Capital, Wells Fargo Energy Capital, Oryx management and other private investors. In March 2017, Oryx II closed on an equity commitment of $340 MM from the same sponsor group, bringing the total commitment to Oryx to $640 MM.
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