Noble Midstream Partners LP (NYSE: NBLX) dedicated about 64,000 acres in the Delaware Basin to its Blanco River Development Co. for infield crude oil and produced water gathering, and substantially all of the acreage for infield gas gathering.
The acreage was acquired by Noble Energy Inc. (NYSE: NBL) in January as part of its $2.7 billion acquisition of Clayton Williams Energy Inc.
In addition, Noble Energy has dedicated infield gas gathering on substantially all of their legacy 47,000 net acres in the Delaware Basin to Blanco River. Noble Midstream owns a 25% controlling interest in Blanco River and the remaining 75% is retained by Noble Energy.
“Already in 2017, we have added significant scale to our Permian infield gathering operations while also establishing a new Permian business segment with the Advantage Pipeline acquisition,” said Terry R. Gerhart, CEO of Noble Midstream, in a statement. “These portfolio additions are a significant step toward our long-term Permian objective of generating approximately half of the Partnership’s EBITDA from the Permian Basin by 2020.”
The MLP’s Delaware Basin infield gathering dedications now total about 111,000 net acres for crude oil and produced water, with substantially all of the acreage also dedicated for gas gathering. Noble Midstream’s Delaware Basin services also include crude oil transmission and storage through a 50% interest in the Advantage pipeline system.
The partnership also waived its right of first refusal for natural gas processing on about 80,000 net acres in the Delaware Basin, of which approximately 35,000 net acres were dedicated to a third party through 2021.
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