The deal will allow Noble Midstream to increase its stake in Colorado River DevCo to 100% from 80% and Blanco River DevCo to 40% from 25.
Noble Energy will hold the remaining 60% interest in Blanco River DevCo.
Blanco River DevCo owns Noble Midstream’s Delaware Basin in field gathering commitments on around 111,000 acres for oil and produced water gathering, with most of the acreage used for gas gathering.
Around 40% to 50% of its 2017 gross capital budget will be allocated to Blanco River DevCo due to the construction of four central gathering facilities and backbone pipeline infrastructure to support Noble Energy’s Delaware Basin operations.
The first facility is expected to complete in the middle of this year, while the second in the fourth quarter of this year and the other two in the first half of 2018.
The four central gathering facilities are expected to have an oil capacity of up to 120 thousand barrels per day by the end of 2018, while the oil, gas and produced water gathering systems will include around 180 miles of pipelines by the end of 2018.
Colorado River DevCo includes gathering systems across Noble Energy’s Wells Ranch and East Pony development areas.
Noble Midstream offers oil, natural gas and produced water gathering, in addition to fresh water delivery services in Wells Ranch, and oil gathering in East Pony through Colorado River DevCo.
Colorado River DevCo holds assets, including Wells Ranch central gathering facility with around 45 thousand barrels of daily oil capacity and around 125 miles of oil, gas and produced water gathering pipelines combined in Wells Ranch and East Pony.
Noble Midstream general partner CEO Terry Gerhart said: “We are very pleased to further the Partnership’s exposure to the Delaware Basin through this accretive acquisition of additional interests in Blanco River DevCo, ahead of the significant growth anticipated from Noble Energy in the Delaware Basin.”
