TC Energy Corp.’s Keystone oil pipeline has returned to service following the approval of their repair and restart plan by the U.S. Pipeline And Hazardous Materials Safety Administration (PHMSA) on Nov. 10.
As part of the restart plan, the pipeline will operate at reduced pressure with a gradual increase in volume of crude oil moving through the system, the company said in a statement on Sunday.
The 590,000-barrel-per-day Keystone pipeline has been shut since Oct. 30 after a drop in pressure was detected and more than 9,000 barrels of oil spilled out.
The deal would create the largest pure-play northern Midland Basin E&P with a 73,000-net-acre position and 12,000 boe/d of production that is expected to more than double through 2020.
Repsol will still hold a 51% stake in the block after the deal.
The March 20 lease sale in the U.S. Gulf of Mexico brought in $244.3 million in high bids.