Crestwood buys Arrow Bakken gathering systems for $750 million

Crestwood Midstream Partners LP’s wholly owned subsidiary Crestwood Arrow Acquisition bought Bakken-shale gathering company Arrow Midstream Holdings LLC in a deal valued at $750 million. The acquisition followed the Oct. 7 completion of the merger between Crestwood and Inergy Midstream. Arrow owns and operates crude oil, natural gas, and water gathering systems in the Fort Berthold Indian Reservation in the core of the Bakken shale, McKenzie and Dunn Counties, ND.

The Arrow system consists of more than 460 miles of gathering pipeline, including 150 miles of crude oil gathering line, 160 miles of gas gathering line, and 150 miles of water gathering lines. Current volumes on the system are roughly 50,000 b/d crude oil, 15 MMcfd rich natural gas, and 8,500 b/d water. Over the next 18-24 months the company expects to reach targeted operational capacities of 125,000 b/d of crude, 100 MMcfd of gas, and 40,000 b/d of water.

The acquired assets also include saltwater disposal wells and a 23-acre central delivery point (CDP) with multiple pipeline take-away outlets and a fully automated truck loading terminal.

The Arrow gathering systems are anchored by long-term, primarily fee-based, gathering contracts with producers that have dedicated more than 150,000 acres to Arrow, including more than 1,000 potential drilling sites. Eight drilling rigs are currently active in the area, with additional rig activity occurring in areas immediately adjacent to the systems.

The Arrow systems are about 60 miles southeast of Crestwood’s 120,000-b/d COLT Hub crude rail and pipeline terminal in Williams County, ND, and have direct connectivity with COLT through the Hiland and Tesoro crude oil pipeline systems. Crestwood acquired COLT through the Inergy merger. The hub delivers Bakken crude to both East Coast and West Coast markets and is being expanded to 160,000 b/d. Many of Crestwood’s largest customers at COLT are also major purchasers of crude oil at the Arrow CDP.

Crestwood said the acquisition would make it midstream services provider to about 18% of the Bakken shale region’s crude production. Arrow expects to complete an expansion of its gas gathering capacity to capture current flared natural gas volumes by yearend the year.

Earlier this year Crestwood acquired Jackalope Gas Gathering Services LLC, which is active in the Powder River basin Niobrara shale play in Converse County, Wyo. (OGJ Online, June 24, 2013).

Contact Christopher E. Smith at chriss@ogjonline.com.

Related Articles

EPA approves Magellan’s Corpus Christi splitter project

12/12/2014 The US Environmental Protection Agency has issued a final greenhouse gas prevention of significant deterioration construction permit to Magellan Pr...

Keyera to take majority interest in Alberta gas plant

12/12/2014 Keyera Corp., Calgary, will pay $65 million (Can.) to buy a 70.79% ownership interest in the Ricinus deep-cut gas plant in west-central Alberta.

PBF Energy, PBF Logistics make management changes

12/12/2014 Matthew Lucey, currently executive vice-president of PBF Energy Inc., will succeed Michael Gayda as the company’s president. Todd O’Malley, current...

TAEP: TPI still peaking, but ‘contraction unavoidable’ as oil prices fall

12/12/2014 The Texas Petro Index (TPI), a composite index based on a comprehensive group of upstream economic indicators released by the Texas Alliance of Ene...

MARKET WATCH: NYMEX crude oil price extends slump

12/12/2014 Crude oil prices extended their slump on the New York market with a Dec. 11 settlement of less than $60/bbl for January, and prices continued downw...

US needs more data before ending crude export ban, House panel told

12/11/2014 Much more environmental impact information is needed before the US can reasonably remove crude oil export limits, a witness told a House Energy and...

BOEM raises offshore oil spill liability limit to $134 million

12/11/2014 The US Bureau of Ocean Energy Management increased the liability limit for oil-spill related damages from offshore operations to $134 million from ...

Rosneft, Essar sign terms of oil supply agreement

12/11/2014 OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

Barton introduces bill to remove US crude export limits

12/11/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected