An open season has been concluded by the operator of an expanded oil pipeline system in the Delaware Basin of eastern New Mexico.
It means more oil will be moving out of the area toward the Gulf Coast refineries. Oryx Midstream Services based in Midland, Texas announced the completion by four of its operating subsidiaries. The four subsidiaries are Oryx Delaware Oil Gathering NM LLC, Oryx Delaware Oil Gathering TX LLC, Oryx Western Delaware Oil gathering LLC and Oryx Delaware Oil transport LLC.
The four subsidiaries support the development and construction of a new regional crude gathering and transportation system. It will consist of more than 500 miles of new pipeline with more than 1.5 million barrels of storage capacity and ultimate capacity of nearly 700,000 barrels a day.
The new system will extend into Carlsbad, Eddy County, New Mexico and Lynch, Lea County, New Mexico. It will also serve production from every active county in the Delaware Basin including Loving, reeves, Ward, Pecos, Winkler and Culberson counties in Texas.
Oryx expects to complete the initial phases of the project in the second half of 2018, with the system expansion expected to be completed in the second quarter of 2019.