Page 10 - NorthAmOil Week 24

NorthAmOil PROJECTS & COMPANIES NorthAmOil
Phillips 66 enters race to build crude export terminal
TEXAS
US re ner Phillips 66 has unveiled plans to build a deepwater crude export terminal o the US Gulf Coast. e proposal, known as Bluewater Texas Terminal, is one of at least nine projects aimed at shipping rising volumes of US tight oil to overseas markets.
Phillips 66 has applied for federal and state permits to build port facilities around 20 miles (32 km) o the Texas coast near Corpus Christi. It is also proposing to build related crude pipe- lines, Reuters reported, citing documents it had viewed, and sources familiar with the plans.
e application to build the terminal comes a er the company announced earlier this month that it would proceed with two major pipeline projects. (See NorthAmOil Week 23) e com- pany is building the US$2.5 billion Red Oak pipeline from the oil storage hub at Cushing, Oklahoma, to destinations on the Texas coast in a joint venture with Plains All American Pipeline. Meanwhile, Phillips 66 is also pushing ahead with the US$1.6 billion Liberty pipeline project, which will carry oil from the Bakken play and the Rockies region to Cushing, in partnership
with Bridger Pipeline. From Cushing, oil can be shipped on to the Gulf Coast as well.
e proposed Bluewater Texas Terminal pro- ject would be capable of fully loading very large crude carriers (VLCCs), which can hold up to 2 million barrels of oil. Only one US port currently has the capacity to fully load VLCCs, prompting a rush among developers to build new export ter- minal facilities to handle larger tankers.
“Bluewater Texas would provide US oil pro- ducers another outlet for their increasing vol- umes while also potentially reducing the need for reverse lightering and the environmental impact that those operations have on a regional level,” Phillips 66 said in a statement.
But the project, which is being developed with the Port of Corpus Christi, would compete with other export terminals proposed in the area, by investor Carlyle Group and commodities trader Tra gura.
Phillips 66 also owns a 25% stake in Buck- eye Partners’s South Texas Gateway export ter- minal, which is under construction in Corpus Christi.™
UPSTREAM
Development Capital Resources announces US$165 million development joint venture in the Permian Basin
Development Capital Resources announced today that a DCR-managed subsidiary, capitalised by funds managed by a liates
of Ares Management, has entered into a drilling and development joint venture with a private operator in the Permian Basin.
e DCR-managed entity will invest up to US$165 million in the joint venture and
will participate as a working interest owner in the drilling and completion of identi ed drilling locations in the Permian’s Wolfcamp formation.
e drilling programme has commenced, and it is anticipated to continue through 2020.
“ is transaction represents a continuation
NEWS IN BRIEF
of our strategy of participating in energy sector joint ventures with quality operators in established basins,” said Ronnie Scott, president of DCR.
“As the structure of energy joint ventures continues to evolve, DCR has worked to remain exible in nding ways to assist operators to improve and develop their assets.”
“We are excited to complete our fourth transaction in this segment of the energy space. In each case, we have been able to structure a creative solution tailored to the needs of the operator,” said Matt Loreman, executive VP of DCR.
“While the energy investment space remains challenging, it has been enjoyable
to work directly with quality companies to nd investment solutions that work for them and for DCR. We look forward to continuing to grow our portfolio of non-operated partnerships.”
“ is partnership re ects the exible capital approach of Ares and our ability
to customise transactions to the needs of operators,” said Gary Levin, Partner in the Ares Private Equity Group.
“We look forward to nding additional
ways to utilise the scale and creativity of our platform to provide attractive capital solutions to the energy industry.”
DEVELOPMENT CAPITAL RESOURCES, June 19, 2019
Roan Resources provides positive update to 2Q’19 guidance and provides operational update
Roan Resources announced it is positively updating guidance for the second quarter of 2019.
Speci cally, the company anticipates second quarter production to exceed 50,000 barrels of oil equivalent per day, which compares to adjusted guidance of approximately 49,000 boepd, when accounting for ethane rejection.
Additionally, due to drilling and completion costs continuing to trend lower, the company is projecting CAPEX to come in approximately 10% below original second quarter guidance of US$155 million.
P10
w w w . N E W S B A S E . c o m
Week 24 20•June•2019