Oryx Midstream moves forward with Oryx Trans Permian System Extension

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Oryx Midstream Services LLC announced that its operating subsidiary, Oryx Southern Delaware Oil Gathering and Transport LLC, has launched an additional binding open season to secure volume commitments and/or acreage dedications to support the extension of the Oryx Trans Permian Pipeline System (OTP), an extensive crude oil gathering and transportation system to serve the liquids-rich southern Delaware Basin in Texas.

The proposed extension is currently supported by two producers that operate 50,000 acres in Reeves and Ward counties. It will consist of 120 miles of new pipeline and will connect to Oryx’s existing OTP gathering, transportation and storage system. Construction has started and the system is scheduled for completion early in the fourth quarter of 2016. Upon completion of the extended system, the OTP system will include more than 350 miles of oil pipeline, supported by more than 230,000 dedicated acres.

In addition to the low-pressure gathering and transportation assets, the OTP system includes 112 miles of 16-inch transmission pipeline spanning portions of Reeves, Ward, Pecos, Crane, Upton and Midland counties. It provides access to two major interconnects, currently delivering into Magellan’s Longhorn Pipeline near Crane, Texas, and a connection into Enterprise’s Midland Terminal scheduled for completion in August 2016.

The OTP system also includes three storage terminals near the Texas towns of Pecos, Crane and Midland, with 150,000 bbls of leased or owned storage capacity currently in service. Oryx will expand the system’s storage capacity to more than 390,000 bbls with additional tankage in Reeves, Ward and Crane Counties.