A private equity fund sponsored by oil industry stalwart T. Boone Pickens has committed $75 million to a joint venture that would provide natural gas produced at the wellhead to power onsite drilling services.
BP Natural Gas Opportunity Partners is providing the financing to Mesa Natural Gas Solutions LLC, a joint venture of the Pickens fund and Moser Engine Service Inc. (MES). Mesa, like MES, is based in Casper, WY, and has been servicing the energy industry since 1973.
Mesa would provide electric power, primarily to the oil and gas industry, by using gas produced at the wellhead. Associated gas flared at oil production sites is a particular concern in North Dakota's Bakken Shale (see Shale Daily, May 15; Nov. 8, 2013). A liquefied natural gas production facility earlier this month was announced to take advantage of the growing associated gas supply (see Daily GPI, May 8). In January, Wyoming regulators launched a year-long review to consider revising the associated gas rules because of the booming oil industry (see Daily GPI, Jan. 9).
MES claims to have more than four million run-hours on wellhead gas units across its fleet, which is more than any other company in North America, according to BP Partners.
"Mesa Natural Gas Solutions will leverage the industry-leading products built by Moser Energy Systems and the industry experience of T. Boone Pickens and the team at BP Energy Partners to provide solutions that exceed our customer's expectations," said Mesa CEO Jakob Norman.
Mesa is the first portfolio company investment for BP Partners, a fund launched by Pickens and the management of BP Energy Partners LLC.