Reliance Industries Seeks Buyer for Eagle Ford JV Interest

Bloomberg: JV Valued at ~$4-Billion
Pioneer Natural Resources' Production Chart

Pioneer Natural Resources’ Eagle Ford Production Chart | Click to Enlarge

India’s Reliance Industries is looking for a buyer for its interest in a three-way joint Eagle Ford joint venture, according to Bloomberg, which cited “people familiar with the matter.” The other players in the JV are Irving, Texas-based Pioneer Natural Resources Co. and a division of Mexico’s Alfa SAB de CV – Newpek, LLC.

Mumbai-based Reliance entered the Eagle Ford in 2010 for $1.15-billion. The deal included a 45% interest in Pioneer’s Eagle Ford acreage. Currently, Pioneer has ~230,000 gross acres across the play, and a 46% interest in the JV. Newpek, LLC has a 9% interest.

Read more: Reliance – Pioneer – Newpek Joint Venture

The assets included in the JV are in the heart of the Eagle Ford’s condensate window. In June, Pioneer garnered headlines when it received permission from the U.S. Commerce Department (U.S. DoC) to export minimally processed condensate to foreign buyers. With the green light from the U.S. DoC, the assets have become even more attractive and more valuable. Total assets are valued at ~$4 billion, according to Bloomberg’s sources.

Read more: Pioneer CEO Confirms Condensate Exports to Europe 

Earlier this year, Pioneer tabled a deal to sell its interest in the Eagle Ford JV, but will likely consider another offer if the price is right. Newpek, LLC is also reportedly looking for a buyer, according to Bloomberg.

In the second quarter, Pioneer posted record net production in the Eagle Ford of 47 mboe/d. Pioneer, which is the operator for the assets, expects to place 125 wells online in 2014.

Double Eagle Pipeline Moving Eagle Ford Condensate to Corpus Christi

Condensate Moving From Three Rivers To Magellan's Corpus Christi Terminal
Double Eagle Pipeline - Eagle Ford Condensate System

Double Eagle Pipeline – Eagle Ford Condensate System | Click to Enlarge

Double Eagle Pipeline, LLC, a joint venture between Kinder Morgan and Magellan Midstream, has started moving condensate to Corpus Christi.

The pipeline is part of a project that was started by Copano and Magellan, but is operated by Kinder Morgan who purchased Copano earlier in 2013. [Read more…]

Kinder Morgan Expanding Its Eagle Ford Crude & Condensate Pipeline Into Karnes

$107 Million Expansion Is Supported By Long-Term Commitments From ConocoPhillips
Kinder Morgan Crude & Condensate Expansion into Karnes County

Kinder Morgan Crude & Condensate Expansion into Karnes County | Click to Enlarge

Kinder Morgan is expanding its 300,000 b/d Eagle Ford crude & condensate pipeline (KMCC) 31 miles into Karnes County.

The expansion will extend the 178-mile pipeline from the DeWitt Station in DeWitt County, TX, to a Centeral Delivery Facility operated by ConocoPhillips near Helena in Karnes County. [Read more…]

Kinder Morgan Plans Second Condensate Facility at Galena Park

Condensate Production From The Eagle Ford Provides Growing Supply
Kinder Morgan Galena Park Terminal Photo

Kinder Morgan’s Galena Park Terminal | Click to Enlarge

Kinder Morgan has reached an expanded agreement with BP that will support the development of an additional 50,000 b/d condensate processing facility at Galena Park. [Read more…]

Eagle Ford Oil Prices Trade at a Premium to WTI – Condensate Weaker

Eagle Ford crude oil prices have been $10/bbl better than WTI at times this year

Eagle Ford oil prices realize a nice premium to WTI and higher API condensates trade at a discount. One of the great advantages the Eagle Ford has over other shale plays is location, location, location. A short commute to the nation’s petrochemical backbone means operators realize better oil prices than most areas of the U.S.

Eagle Ford Shale Oil Price Premium

Eagle Ford oil prices trade at a premium to WTI or a discount to LLS depending on who you talk to. Over the past two months, posted Eagle Ford prices have traded at a ~$6-8 premium to WTI and a ~$6 discount to LLS posted prices. That’s after spending part of April and May at >$10 premium to WTI and almost parity with LLS.

Eagle Ford Condensate Prices Trade at a Discount to Crude Oil

Oil Drum ImageIn 2011, over 36% of reported liquids production from the Eagle Ford was considered condensate and as much as 50% of production today is estimated to be condensate. That’s a significant portion of production, so it’s important to understand its pricing. [Read more…]

BP – Kinder Morgan Sign Long-term Eagle Ford Processing Agreement

Kinder Morgan Galena Park Terminal Photo

Kinder Morgan’s Galena Park Terminal | Click to Enlarge

Kinder Morgan announced on July 19, 2012, the company will provide long-term condensate processing services and storage at terminals located in the Houston Ship Channel. BP will lease 750,000 barrels of storage and has committed 40,000 barrels per day of condensate that will be split into its light and heavy napthas, as well as kerosene and gas oil.

To accommodate, Kinder Morgan will spend $75 million to add storage at its Galena Park Terminal. Five tanks that connect to the condensate facility, new pipes and pumps will will be part of the expansion. [Read more…]

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