Santa Fe, Vermillion to Launch Delaware Basin Effort
Santa Fe Midstream plans to form a joint venture with Vermilion Cliffs Partners 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-inch natural gas pipeline and associated facilities in Culberson County and dedicate acreage to the venture. Santa Fe will supply additional capital needed to construct gathering pipelines and a 200 MMcfd cryogenic gas processing plant in Culberson County. Santa Fe will be the operator of the midstream assets.
Due to 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 United States and Texas markets. NGL’s will be delivered to pipelines for transportation and fractionation at Mont Belvieu, TX.
“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.
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 honored to join the fine team at Santa Fe Midstream to pursue this venture.”
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments