Another new joint venture is being formed to target oil and gas land in the Permian Basin. Santa Fe Midstream LLC based in Plano, Texas has joined forces with Vermilion Cliffs Partners LLC of Fort Worth as the two plan to carry out exploration in Reeves and Culberson counties in West Texas.
Vermilion will contribute a 20 inch natural gas pipeline and associated facilities in Culberson County. Santa Fe will supply the additional capital required to built gathering pipelines as well as a new 200 MMcfd cryogenic gas processing plant in Culberson County. Santa Fe will be the operator of the midstream assets.
Company leaders indicate that because of the ongoing growth and development of the Delaware Basin, significant capital investment will be needed in the two counties.
The Santa Fe-Vermilion joint venture will offer natural gas gathering and processing, crude oil gathering and produced water gathering to disposal wells for producers in the Delaware Basin. Natural gas residue will be delivered to downstream interstate and intrastate pipelines serving Mexican, Western U.S. and Texas markets.