Vivakor (VIVK) has completed an expansion project of the company’s crude gathering lines in Blaine County, Oklahoma, the midstream company announced Nov. 25. (Source: Shutterstock)
Vivakor (VIVK) has completed an expansion project of the company’s crude gathering lines in Blaine County, Oklahoma, the midstream company announced Nov. 25.
The additional crude pipelines connecting to Vivakor’s Omega Pipeline System adds to the asset profile of a public company that made a $120 million acquisition in the Permian Basin in October.
The Omega system is a 40-mile crude gathering and shuttle pipeline system serving the STACK play in Oklahoma's Anadarko Basin and connecting to the Cushing Hub. Vivakor expects an immediate increase in incremental customer volumes from oil production in the fields connecting to the enlarged network.
Vivakor completed the two-pipeline expansion ahead of schedule and under budget, according to the company announcement, which did not disclose the overall cost. The Omega system's operations are complemented by a fleet of approximately two dozen trucks supporting additional incremental volumes from customers.
"I'm proud of the quick work accomplished by our in-house construction management team," said James Ballengee, chairman, president and CEO, in the press release. "This is another positive step forward in executing upon our midstream strategy to organically grow volumes and retain important customers."
Vivakor provides energy transport, storage, reuse and remediation services.
The company decided to move ahead with the Omega project following the close of the $120 million acquisition of Endeavor Crude and three related companies in early October. Endeavor assets were located primarily in the Permian Basin, Eagle Ford and the STACK play. The related companies were Meridian Equipment Leasing LLC, Equipment Transport LLC and Silver Fuels Processing LLC.
The Endeavor move strengthened Vivakor’s position in the trucking sector of crude, petroleum products and produced water transport. Vivakor is now one of the largest energy trucking fleets in the U.S.
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