Published: February 2, 2017 |

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Santa Fe Midstream LLC has plans to form a joint venture with Vermilion Cliffs Partners, LLC to develop crude oil, natural gas and water midstream infrastructure in the Delaware Basin in Reeves and Culberson counties in West Texas.

Vermilion will contribute a 20” natural gas pipeline and associated facilities in Culberson County and dedicate acreage to the joint venture. Santa Fe will supply the additional capital required to construct gathering pipelines as well as a new 200 MMcfd cryogenic gas processing plant in Culberson County. Santa Fe will be the operator of the midstream assets.

“This joint venture will provide superior midstream solutions for producers in Culberson and Reeves counties,” said Amer Rathore, founder and managing partner at Santa Fe.

“In addition, we look forward to working with Vermilion Cliffs Partners to utilize their vast experience in both the upstream and midstream sides of the business,” said Cliff Rupnow, managing partner and VP of commercial at Santa Fe.

Due to the ongoing growth and development of the Delaware Basin, significant capital investment in new midstream infrastructure is needed in Reeves and Culberson counties. The Santa Fe - Vermilion joint venture will offer natural gas gathering and processing, crude oil gathering and produced water gathering to disposal wells for producers in the Delaware Basin. Natural gas residue will be delivered to downstream interstate and intrastate pipelines serving Mexican, Western U.S. and Texas markets and NGL’s will be delivered to pipelines for transportation and fractionation at Mont Belvieu, Texas. These facilities will meet a critical need for midstream services in the rapidly expanding central and southern sections of the Delaware Basin.

“The Santa Fe - Vermilion midstream joint venture is well positioned to deliver exceptional service and flexibility for producers in the southern Delaware Basin. Vermilion Cliffs Partners is honored to join the fine team at Santa Fe Midstream to pursue this venture,” said Jeff Cook, founding partner of Vermilion.

About Santa Fe Midstream
Based in Plano, Texas, Santa Fe Midstream is a creative midstream company led by an experienced and successful management team. Santa Fe is dedicated to creating value for our customers as we partner with them in providing a full menu of midstream services. Their capabilities include natural gas gathering, compression, treating and processing, crude oil gathering and transportation, produced water handling, as well as condensate and NGL products marketing. Santa Fe Midstream is backed by Energy Spectrum Capital’s fund Energy Spectrum Partners VII LP.

To stop by Santa Fe Midstream’s website, CLICK HERE

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