Page 12 - NorthAmOil Week 42

NorthAmOil
NEWS IN BRIEF
NorthAmOil
UPSTREAM
LLOG Exploration orders
subsea trees for the
Shenandoah project in the
deepwater Gulf of Mexico
LLOG Exploration Offshore today announced the signing of a subsea tree order with TechnipFMC for its Shenandoah project in deepwater of the Gulf of Mexico (GoM). This order is the first material equipment order
for the Shenandoah project and the first of its kind for subsea trees designed for pressures up to 20,000 pounds per square inch (psi).
“LLOG is excited about signing this subsea tree order which is a first in the industry and a significant milestone towards the development of our Shenandoah project,” said LLOG COO, Rick Fowler. “LLOG is pleased to expand our strategic alliance with TechnipFMC who has provided all of LLOG’s subsea equipment for more than a decade.”
LLOG operates the Shenandoah discovery, located in the Unit comprised of Walker Ridge blocks 51, 52, and 53 in the deepwater GoM, approximately 200 miles south of
New Orleans, on behalf of the Shenandoah partners Venari Offshore, Navitas Petroleum and Beacon Offshore Energy. The leases
are currently held under a suspension of production (SOP) and will be developed using a new floating production system. The partnership will drill multiple wells to develop the estimated 100 to 400 million barrels targeting previously discovered oil-bearing Upper and Lower Wilcox-reservoirs. The
oil and rock qualities for the Shenandoah development are both best-in-class for the emerging Wilcox production trend.
LLOG EXPLORATION OFFSHORE, October 15, 2019
MIDSTREAM
ARB Midstream announces start-up of new crude oil gathering system in the DJ Basin
DJ South Gathering, a subsidiary of ARB Midstream announces a key expansion
of its fast-growing crude oil gathering
and transportation system in the prolific
DJ Basin in northeastern Colorado. The Badger pipeline, one of three large diameter transmission lines currently being constructed by DJS, started receiving crude oil this month. With a throughput of 90,000 bpd, Badger transports production from southwestern Weld County and delivers into 300,000 barrels of dedicated crude oil storage at Platteville, the key crude oil hub within the DJ.
Badger is one segment within the larger DJS system, which also includes the 220,000 bpd Matador pipeline, Bennet Station, the 150,000 bpd bi-directional Freedom pipeline and the Platteville Storage and Distribution network. Matador is slated to be in service
in late 2019. This large transmission line is the first and only line that links Platteville
to the southern region of the DJ. Bennett Station provides truck and gathered barrel origination into Matador, and crude qualities are segregated into onsite tankage. Freedom pipeline is the bi-directional, large diameter transmission line that will link Platteville
to Lucerne West. Lucerne West is the delivery point of ARB’s existing Platte River Gathering System in the northern DJ. At Platteville, DJS is developing a header system that interconnects with multiple long-haul takeaway pipelines and delivers crude oil to downstream markets.
ARB’s crude oil gathering systems include
over 250 miles of new pipeline covering the core of the DJ Basin, with over 625,000 bpd of planned and existing throughput capacity and 600,000 barrels of storage. At over 250,000 dedicated acres underpinned by long term, fixed-fee contracts with numerous customers, ARB is the largest privately held crude oil gatherer in the DJ Basin.
The expansion of the ARB Midstream pipeline system in the DJ Basin is funded by Ball Ventures through its energy division: BV Natural Resources.
ARB MIDSTREAM, October 15, 2019
Basalt to acquire natural
gas transmission business
from Third Coast Midstream
A fund managed by Basalt Infrastructure Partners II GP today announced that it
has entered into a definitive agreement to acquire Third Coast Midstream’s natural gas transmission business.
“This investment represents a rare opportunity to invest in a portfolio of demand-driven, regulated ‘last-mile’ natural gas pipelines serving utilities and other key end-user customers in the Southeastern United States. The business is strategically positioned to capture continued industrial growth in the region,” said David Greenblatt, Partner of Basalt Infrastructure Partners LLC, exclusive investment Advisor to the Basalt funds. “Cash flows from the business are anchored by long-term firm transportation contracts with a diverse customer base of utility, power and industrial customers.”
“We are proud of the accomplishments our team has executed over the last several years in building out this portfolio of high-quality gas transmission assets in the Southeast United States,” stated Matt Rowland, Third Coast’s president and chief executive officer. “We are confident that Basalt brings the
right combination of financial strength and strategic experience to continue safe, efficient and growing operations. The sale is a further step in Third Coast’s strategic repositioning to focus on its core Gulf of Mexico infrastructure platform.”
The natural gas transmission business includes seven regulated natural gas lateral pipelines with total capacity of over 1,600 MDth per day, stretching approximately 550 miles. The lateral pipelines are connected to 8 major long-haul pipelines, ensuring reliable gas supply to customers across Louisiana, Alabama, Mississippi, Tennessee and Arkansas.
Consummation of the transaction remains
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Week 42 22•October•2019