Oilfield Water Logistics (OWL), a leading provider of produced water infrastructure solutions in the Permian and Powder River Basins, on Jan. 6 acquired a portfolio of operating assets in New Mexico (the System) from a major Permian Basin oil producer (the Seller), including 23 saltwater disposal wells and 300 miles of water gathering pipelines.
The Seller also entered into a long-term contract with OWL for water infrastructure solutions, thereby extending a strong existing customer relationship while enabling OWL to offer the benefits of the System to other E&P customers in the region.
“This acquisition complements our current operations in the Northern Delaware Basin, doubling OWL’s footprint and enhancing our capabilities and long-term value proposition for customers,” Chris Cooper, CEO of OWL, said. “E&P companies increasingly face operational and logistical challenges related to the transportation, re-use and disposal of produced water. We are proud to partner with North American producers to deliver safe, reliable and sustainable solutions that help our customers to achieve new efficiencies and best practices.”
The financial terms of the transaction were not disclosed.
OWL was advised by Scotiabank, Jackson Walker LLP, and King & Spalding LLP.
Energy scholar Robert Bryce offers an unabashed view of the shale revolution, climate change and the future of energy. Spoiler alert: don’t expect oil and gas to disappear anytime soon.
Alberta introduced mandatory production curbs beginning on Jan. 1 this year to reduce a glut of oil in storage and shore up prices.
The regulator said Suncor, which operates the vessel, specifically failed to meet requirements regarding its redundant fire water pump system on the floating installation.