MVP Holdings LLC on Dec. 20 announced the formation of Great Salt Plains Midstream Holdings LLC, a joint venture between MVM Midstream LLC (an entity formed with Energy Spectrum Partners VII LP and MVP Holdings) and Chisholm Midstream LLC (a subsidiary of Chisholm Oil & Gas LLC).
The new JV will expand crude oil and gas infrastructure and provide more optionality for producers in the rapidly growing Stack play of central Oklahoma. In addition, GSPM will enable its producer customers in the area multiple marketing options, including a direct line into the strategic Cushing crude oil complex.
MVP will contribute recently acquired assets, including the 115-mile Great Salt Plains Pipeline from Cherokee to Cushing, Okla., to the joint venture, which is supported by long-term acreage dedications and throughput commitments from active Oklahoma producers and crude marketing companies. Additional plans call for immediate expansion of the Great Salt Plains crude system to provide for initial crude gathering and transportation of up to 40,000 barrels of oil per day.
The natural gas STACK platform will consist of the placement and build out of a state-of-the-art cryogenic processing facility in Major County, Okla. The Silver Lake Plant will have initial capacity to process up to 70 million cubic feet of natural gas per day (MMcf/d) with expansion capacity of up to 220 MMcf/d. The facility will include over 130 miles of gas gathering lines and multiple compressor stations. It is expected to be in service in second-quarter 2018.
“Mid-continent producers continue to actively invest in acreage and drilling in the Stack area extending north and west. MVP and our investment partners are dedicated to providing the full range of midstream services to our producer community to support this crucial development of energy resources,” said MVP Holdings President and CEO Gary Navarro.
“We are very supportive of the MVP management team and appreciate their capabilities in managing and constructing a system of this magnitude,” said Jim Benson, managing partner of Energy Spectrum, “and we have had a 20-plus year relationship with the principals of MVP. We also welcome the opportunity to work with Chisholm and its sponsor, who have considerable experience and resources in this area.”
“We view this joint venture with MVP/Energy Spectrum as strategic and value enhancing to our upstream assets,” said Bob Zinke, CEO of Chisholm.
The total capital investment of the Project is over $150 million, and there will be up to 250 people employed at the site during the height of construction activity.
Top oilfield services provider Schlumberger reported a drop in quarterly profit, hit by weak demand for its equipment and services from oil producers under pressure to rein in spending.
Renewable energy growth is estimated at an annual average rate of 11% between 2015 and 2035, with growth in wind and solar capacity up nine-fold from seven percent of total power supply today to nearly 40% by 2040, energy consultancy Wood Mackenzie estimates.