Chevron Corp. plans to sell a number of pipeline assets in Denver-Julesburg (DJ) basin, according to reporting by Reuters. The oil major got the bulk of the pipeline assets as part of its 2020 acquisition of Noble Energy.
At the time of acquisition, Noble’s DJ crude oil pipeline assets included the 50,000-b/d Wells Ranch gathering system, which could deliver to Platteville, Colo., via a capacity agreement using the Wattenberg Oil Trunkline (WOT). Wells Ranch assets also had 96,000 bbl of storage.
Noble’s 85,000-b/d East Pony gathering system likewise delivered directly to WOT. The company’s 60,000-b/d Greeley Crescent gathering system delivered crude to the Grand Mesa and White Cliffs pipelines via the Black Diamond Lucerne and Milton terminals, the latter of which was also accessed by Noble’s Mustang gathering system (60,000-b/d). The gathering system servicing Noble’s Black Diamond dedication area has total crude throughput capacity of 330,000 b/d.
Noble’s DJ natural gas presence was smaller, with 175 MMcfd of gathering in Wells Ranch and 250 MMcfd in Mustang.
Market observers expect the sale to generate $2 billion or more, noting annual earnings from the assets of roughly $200 million.
As of third-quarter 2023 Chevron expected its DJ production to reach 400,000 b/d, following its acquisition of PDC Energy Inc.
