Another oil pipeline is in service to transport oil out of the Permian Basin in southeast New Mexico. San Mateo Midstream, LLC of Dallas announced its San Mateo Black River Oil Pipeline in Eddy County, New Mexico is now operational.
The line went into operation after San Mateo carried out a successful open season earlier this year to gauge shipper interest n committed crude oil interstate transportation service on the Rustler Breaks Pipeline System. The Rusher Breaks includes 17 miles of 10-inch diameter crude oil lines from origin points in Eddy County to an interconnect with Plains Pipeline, L.P.
San Mateo and a subsidiary of Plains All American Pipeline, L.P. made the agreement in January to provide oil transportation service to producers in a nearly 400,000 acre area of Eddy County. The lines will carry the oil from the wellhead to Midland, Texas with access to other end markets.
“Placing the Rustler Breaks Pipeline System into service completes San Mateo’s goal of being a full-service midstream solution for producers in the northern Delaware Basin,” Matt Spicer, Senior Vice President and General Manager of San Mateo, said.