Blue Mountain Midstream LLC subsidiaries Wildcat Oil Gathering LLC and Wildcat Water Gathering LLC launched an open season on July 22 for new systems and services in central Oklahoma, Blue Mountain said in a press release.
Blue Mountain, a wholly owned subsidiary of Riviera Resources Inc., has initiated construction of new crude oil and produced water gathering infrastructure serving Roan Resources. The initial crude oil gathering facilities will consist of about 50 miles of pipeline, primarily contained within the dedicated area of nine contiguous townships in Canadian and Grady counties to be placed into service in phases starting in fourth-quarter 2019.
Blue Mountain has also executed connection agreements with Navigator SMS Pipeline LLC, which will allow Wildcat Oil Gathering to deliver gathered crude oil to Navigator’s Glass Mountain Pipeline via Navigator’s Tuttle and Union City Stations, which are currently under-construction.
The initial water gathering facilities will consist of about 100 miles of water pipeline contained within the dedication area of a contiguous 67 townships covering portions of seven Oklahoma counties. Produced water will be directed to treatment facilities for reuse or to Wildcat Water Gathering owned and operated saltwater disposal wells, as well as third-party disposal wells.
The open season provides prospective customers the opportunity to secure pipe-gathering capacity at competitive fees. The Open Season jointly offers crude oil and produced water services; however, producers can participate in either or both at their election. Subject to the outcome of this open season and future producer commitments, Blue Mountain will construct pipeline segments extending to producers’ production and can expand the systems over time to connect to additional production.
“Blue Mountain is pleased to host the open season as we continue to expand our existing Merge asset footprint and grow our fee-based business with new customers,” said Blue Mountain president and CEO Greg Harper. “We are very pleased with our growth opportunities and are equally pleased that this new infrastructure positively impacts the community by reducing high volume trucking associated with Oklahoma’s oil production.”
Producers interested in securing more information can send requests to email@example.com.
Devon Energy CEO Dave Hager said the industry in general, Devon included, has not delivered acceptable returns to investors.
Plains All American’s Cactus II pipeline became the first major energy project to be denied an exclusion to the tariff on imported steel.
Sustained lower oil prices may lead to Permian consolidation, the return of tough times to other shale plays and U.S. E&Ps helping rebalance global inventories.