Rangeland Midstream Canada Ltd., a wholly owned subsidiary of Rangeland Energy III LLC, April 30 announced its plans to design, construct and operate new crude oil and condensate pipelines located in the Marten Hills region of north central Alberta. The Marten Hills Pipeline System will extend approximately 52.8 miles and consist of crude oil and condensate pipelines and related facilities. The system is expected to come into service in second-quarter 2020.
The system is anchored by long-term transportation agreements with three of the region’s largest crude oil producers, who have made a combined minimum volume commitment representing 40% of the system’s capacity. The agreements also include acreage dedications totaling approximately 450,000 acres.
The system will gather crude oil production from the Clearwater formation in the Marten Hills region, which is emerging as an extremely economic play with low extraction costs using modern multilateral horizontal drilling. The system will deliver blended crude oil to an existing third-party takeaway pipeline which serves the Edmonton, Alberta, hub and refining market. Condensate will be received from a third-party pipeline and delivered to production batteries for diluent blending.
“Rangeland Energy has a long history of successfully executing safe, reliable midstream projects, and we are excited to announce the addition of the Marten Hills Pipeline System,” said Rangeland Canada Vice President of Business Development Briton Speer. “We are providing a timely and creative midstream solution in an emerging play, alleviating potential infrastructure bottlenecks and allowing our producer customers to concentrate on growing their production. This project and our commitment to providing high-quality transportation services are indicative of our steadfast dedication to our customers and the markets they serve.”
Subsea 7 has been awarded a sizeable contract by Shell on Oct. 4 for the Pierce depressurization project, located approximately 160 miles offshore, east of Aberdeen.
Under the contract, BHGE and Ocean Installer will engineer, procure, construct and install 16 new subsea production systems, umbilicals, risers and flowlines to the Jotun A FPSO unit. BHGE and Ocean Installer will also carry out decommissioning work in the field.