Oneok Partners to buy Powder River basin assets

Oneok Partners LP reported it will invest $440 million in the natural gas liquids-rich area of Wyoming’s Powder River basin. The natural gas distributor intends to purchase a 50-MMcfd natural gas processing facility in western Converse and Campbell counties for $305 million from Merit Energy and invest $135 million to upgrade and construct gas gathering and processing related infrastructure, NGL gathering pipelines, and well connections.

The partnership expects to close the transaction during this year’s third quarter and complete the related infrastructure projects in second-half 2014.

As part of the acquisition, Oneok Partners will receive long-term acreage dedications and fee-based and percent-of-proceeds agreements with producers.

In addition to the Bakken NGL pipeline, Oneok Partners currently operates 1,000 miles of gas gathering pipelines in the Powder River and Wind River basins.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...