TULSA, Okla., March 6, 2018 /PRNewswire/ -- Velocity
Midstream Partners, LLC ("Velocity") announced that it has
completed the construction of a 45-mile, 12" crude oil pipeline
loop of its existing condensate pipeline through the fairway of the
South Central Oklahoma Oil Province ("SCOOP"). The crude oil loop
project is supported by expanded commitments from Continental
Resources Inc. (NYSE: CLR), an Oklahoma
City-based exploration and production company, and CVR
Refining, LP (NYSE: CVRR) ("CVR"). Velocity also announced that it
has started construction of a 22-mile, 12" crude oil pipeline
extension linking the core of the Merge play to its SCOOP pipeline
assets. The Merge pipeline will be placed into operation in
April 2018. Along with these new
pipelines, Velocity also announced the completion of a Joint Tariff
agreement with Plains All American Pipeline, L.P. (NYSE: PAA)
("Plains") providing storage and segregated, batched crude
transportation to PAA's Cushing
terminal.
In addition to the new pipeline projects and transportation
arrangements, Velocity has acquired 100% ownership of all of the
truck unloading terminals along its pipelines and has expanded and
added terminals to provide attractive locations for SCOOP and Merge
producers. Upon completion of its Merge terminal just west of
Tuttle, OK, Velocity will have six
unloading terminals operating 24/7 across the two plays with
segregated unloading and storage for crude oil and condensate.
Velocity is in discussions with producers to construct an
additional 15-mile pipeline extension and a new terminal in central
Canadian County.
Velocity's system is now comprised of 125 miles of pipeline
capable of flowing 250,000 barrels per day, along with 395,000
barrels of storage and 26 truck unloading bays capable of unloading
greater than 100,000 barrels per day. The new crude oil pipeline
enables producers in the SCOOP and Merge to segregate their heavier
crude barrels produced from the Springer, Sycamore, Meramec and Woodford oil formations from the lighter
barrels being produced from the Woodford condensate formation. These
segregated pipelines allow Velocity to transport different quality
"neat barrels" from the wellhead to premium markets, thereby
preserving the best possible pricing for its producer clients.
Velocity's crude and condensate pipelines lie through the core
of the SCOOP and Merge plays, allowing Velocity to provide cost
effective gathering solutions to producers regardless of crude
gravity. Velocity's pipeline corridor is within 10 miles of more
than 20 active producers controlling over 1,000,000 proved gross
acres of stacked pay from the Woodford, Springer, Sycamore and Meramec formations.
Velocity has engineered a condensate stabilization facility with
plans for construction this spring to insure producers are able to
continually meet the RVP specifications of downstream pipelines and
Cushing purchasers. Producers
interested in more information about Velocity's gathering and
transportation services should contact Velocity CEO Rick Wilkerson at 918-574-2323.
"Velocity appreciates the continued support of Continental
Resources and is honored to be working with CVR and Plains to
deliver strong, reliable markets to our producer clients in the
SCOOP and Merge. CVR is a highly successful downstream entity with
vast expertise in refining and logistics," said Rick Wilkerson, Velocity's Chief Executive
Officer. "Further, Plains is the premier crude oil transportation
and terminal operator of barrels destined for Cushing, and we are proud to be partnered with
them to provide a complete well-to-market transportation solution.
The attractiveness of Woodford,
Springer, Meramec and Sycamore
crude to Midcontinent refiners like CVR, coupled with the reduction
in crude gathering and transportation costs, provides the producers
in the SCOOP and Merge with the Midcontinent's preeminent market
options."
"As a part of CVR's continued focus on expanding its logistics
business, we are pleased with our partnership with Velocity and its
ability to complete the fully envisioned crude oil pipeline
project," said Dave Lamp, Chief
Executive Officer of CVR. "Velocity has a proven track record of
developing, constructing, and operating high quality midstream
assets and gathering systems."
About Velocity Midstream Partners, LLC: Velocity
(www.velocitymidstream.com) is an independent midstream service
provider that engineers, constructs and operates crude oil and
natural gas gathering and transportation solutions. Velocity was
formed in 2008 by Rick Wilkerson and
Mike Parker. Chief Operating Officer
Van Nguyen joined Velocity in 2010.
Velocity owns and operates crude oil and condensate pipelines and
terminals throughout the SCOOP and Merge basins. Since its
inception, Velocity has been financially supported with capital
commitments exceeding $300 million
through its long-standing partnership with Energy Spectrum Partners
(www. EnergySpectrum.com).
About Plains All American Pipeline, LP: Plains All American
Pipeline, L.P. is a publicly traded master limited partnership that
owns and operates midstream energy infrastructure and provides
logistics services for crude oil, natural gas liquids ("NGL") and
natural gas. PAA owns an extensive network of pipeline
transportation, terminal, storage and gathering assets in key crude
oil and NGL producing basins, in transportation corridors and at
major market hubs in the United
States and Canada. On
average, PAA handles over 5 million barrels per day of crude oil
and NGL in its Transportation segment. PAA is headquartered in
Houston, Texas. More information
is available at www.plainsallamerican.com.
About Continental Resources, Inc.: Continental Resources (NYSE:
CLR) is a top-15 independent oil producer in the Continental U.S.
and a leader in America's energy renaissance. Based in Oklahoma City, Continental is the largest
leaseholder and the largest producer in the nation's premier oil
field, the Bakken play of North
Dakota and Montana. The
company also has significant positions in Oklahoma, including its SCOOP Woodford, SCOOP
Springer and SCOOP Sycamore discoveries and the STACK plays. With a
focus on the exploration and production of oil, Continental has
unlocked the technology and resources vital to American energy
independence and our nation's leadership in the new world oil
market. In 2017, the Company will celebrate 50 years of
operations.
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SOURCE Velocity Midstream Partners, LLC