PEARSALL OIL LINE SCHEDULED
Texaco Pipeline Inc. and Oryx Energy Co., Dallas, have formed a 50-50 venture to lay and operate a 90,000 b/d, $26 million pipeline to gather and transport oil from Pearsall field in South Texas.
The venture, Pearsall Pipeline Co., will consist of a 120 mile gathering system and 53 miles of 12 in. mainline from Pearsall field to Lytle, Tex., south of San Antonio. The common carrier system will connect with other lines to supply markets in Texas and the Midcontinent.
Right-of-way acquisition has begun for the gathering system and mainline. Oil shipments are to begin in June.
Oryx's Pearsall oil and gas production in 1990 was 5.2 million bbl and 2.7 bcf, much of it from horizontal wells.
"This project will allow the vast majority of our wells to be pipeline connected, avoiding bottlenecks associated with trucking the oil," said Donald E. Burns, Oryx marketing vice-president. "it also will open market opportunities to us, thereby improving product realization."
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