Permian Basin

Private equity-backed Santa Fe Midstream LLC said Friday it has jumped into the natural gas processing game in the Permian Basin, with a system underway that should be operational by mid-2018.

An executive with ConocoPhillips said the company is taking its time to test and understand the geology of the Permian Basin, following the same approach it used to develop its position in the Eagle Ford Shale, but that merger and acquisition (M&A) activity is “not a priority.”

Private equity (PE) giant Apollo Global Management LLC is teaming up again with Double Eagle Development LLC to create a Permian Basin-focused explorer.

BHP Billiton Ltd., whipsawed by sharp impairments and activist investors that want the company to train its development solely on conventional oil and mining, is actively marketing its U.S. onshore portfolio, an 800,000-plus leasehold that runs through the Permian Basin, Haynesville, Eagle Ford and Fayetteville shales.

Oil and natural gas employment in the Lone Star State grew by roughly 4,300 jobs in June to 223,300, the seventh consecutive monthly increase, as activity was driven by statewide drilling gains, the Federal Reserve Bank of Dallas said.

3Bear Energy LLC, a privately held midstream company based in Denver, said it has entered into definitive agreements with an unidentified anchor shipper to develop, own and operate a gathering and processing system serving the northern part of the Permian Basin in New Mexico’s Delaware sub-basin.

Lilis Energy Inc., an independent producer focused on the Permian Basin, said it has entered into a long-term natural gas gathering, processing and purchase agreement with an affiliate of Lucid Energy Group to support a drilling program in the Delaware sub-basin.

Construction of Rover Pipeline’s Phase 1A should be completed next week, with Phase 2 on track to start-up in late November or early December, the management team for Energy Transfer Partners LP (ETP) said Wednesday.

Four pure-play exploration operators in the Permian Basin reported increasing production in the second quarter, especially for oil, while successfully batting down lease operating expenses (LOE).