Navigator Energy Services LLC said Sept. 7 it would provide crude oil gathering services to Surge Operating LLC (Surge Energy) for an area of mutual interest (AMI) in Texas.
The AMI spans about 25,000 acres in Howard County, Texas.
Navigator plans to begin construction later this year on a new gathering system for Surge Energy, which will have multiple tie-ins into the existing Big Spring Gateway System (BSG System) and 30,000 barrels (Mbbl) of crude oil storage capacity.
The BSG System, which spans Martin, Glasscock, Howard and Midland counties in the heart of the Permian Basin, has been in service for more than a year and will likely transport more than 100 Mbbl/d of crude oil by the fourth quarter of 2016. The system currently has 140 Mbbl/d of throughput capacity and 500 Mbbl of crude oil storage capacity.
In conjunction with the new gathering system, Navigator plans to expand the capacity of the BSG System by 30 Mbbl/d to 170 Mbbl/d.
Additionally, Navigator will expand its storage capacity by more than 250 Mbbl/d for 750 Mbbl of total storage. Navigator will launch an open season in the coming weeks for the new capacity.
Matt Vining, Navigator’s chief commercial officer, said that with the addition of Surge Energy, the BSG System now serves 12 operators in the North Midland Basin representing more than 500,000 gross acres.
Navigator Energy Services LLC is based in Dallas.
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