Houston-based Noble Midstream and Greenfield Midstream this week made another investment in their Black Diamond joint venture with the $155 million purchase of a 20% interest in the Saddlehorn Pipeline. The 550-mile Saddlehorn currently transports 190,000 BPD of crude oil and condensate from the DJ and Powder River basins to the Cushing, Okla., hub. Expansions are underway to increase the line’s capacity by an additional 100,000 BPD, which is expected to become available late this year.
Noble Midstream Partners LP explores and produces crude oil and natural gas. The Company owns, operates, develops, and acquires a wide range of domestic midstream infrastructure assets. Noble Midstream Partners conducts business in the United States.
The Black Diamond crude oil-gathering and storage system includes 240 miles of pipeline, 300,000 BPD of delivery capacity, 390,000 Bbls of crude oil storage, and connections to every major takeaway pipeline in the basin, including the Saddlehorn. Last July, Noble Midstream expanded Black Diamond’s acreage dedication by 85,000 acres, or 54%. The latest expansion to the system is slated to be completed within the next two months and will boost storage capacity to 420,000 Bbls.
Noble Energy is one of the largest oil producers in the DJ, operating approximately 342,000 acres in Weld Co. Through its development companies, Noble Midstream in the DJ Basin holds 100% controlling interests in Black Diamond; Wells Ranch (crude, natural gas, produced water gathering, fresh water delivery); East Pony (crude gathering, fresh water delivery); and Greeley Crescent (crude and water gathering, fresh water delivery).
Let us know what you think.