Oryx Southern Delaware Oil Gathering and Transport, LLC, a wholly-owned subsidiary or Oryx Southern Delaware Holdings, has retained Lonestar Land Services to obtain Right-of-Way for a new petroleum pipeline system from origin points located in Pecos, Reeves and Ward Counties to destination points located in Crane and Midland, TX as well as gathering sites, tank batteries, tank stations and truck stations. As of the close of 2015, five anchor shippers were dedicating 220,000 operated acres with an area of mutual interest covering more than 1 million acres. Spanning portions of Reeves, Ward, Pecos, Crane, Upton and Midland counties, the system will have an initial capacity of 160,000 b/d with the capability to be expanded to up to 220,000 b/d based on demand.
The project is expected to include more than 300 miles of gathering pipeline, 100 miles of 16-inch diameter transmission pipeline and three storage terminals with 300,000 bbl of leased or owned working capacity. The OTP system will provide access to two major interconnects with delivery into Magellan’s Longhorn Pipeline and Enterprise Products Partners’ Midland Terminal, providing shippers with multiple takeaway options. The system also will have several truck unloading stations to facilitate the movement of trucked production in the area.