Concho Forms Permian JV with Frontier Midstream
Midland-based shale producer Concho Resources Inc. and Frontier Midstream Solutions IV, LLC, based in Tulsa, Oklahoma, are forming a joint venture to provide crude oil gathering, transportation and storage services in the Northern Midland Basin.
The companies have executed an agreement to create Beta Crude Connector, LLC, (BBC) which will consist of a 100-mile gathering system, 250,000 barrels of crude oil storage facilities and truck terminals. The pipeline system will be able to transport 150,000 barrels of crude oil per day.
“Through the joint venture, we will leverage Frontier’s midstream expertise and enhance the value of our high-quality footprint in the Midland Basin with a reliable, cost-efficient gathering and transportation solution,” Concho president Jack Harper said in a company statement. “Importantly, this is a compelling investment opportunity that we can make with no changes to our capital plans.”
Concho recently announced it was selling its stake in Oryx Midstream, a privately-held midstream crude operator in the Permian, for $300 million.
Concho and Frontier will each own 50 percent equity interest in BBC and Frontier will serve as operator.
Construction will begin after open season this month with initial flows set for mid-2019.
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