Portions of BHP’s Eagle Ford Gathering System Closed Due to Corrosion

$1.8 Billion in Eagle Ford Spending Planned from January to June

BHP Billiton LogoBHP Billiton reported in February 2014 that portions of its Eagle Ford gathering system have been temporarily closed due to corrosion. The cause of the corrosion issue is at present being evaluated by the company.

The gathering system closure was revealed in BHP’s December 2013 financial report of Petrohawk. BHP is required to report operations updates and financial results to Petrohawk’s debt holders, after acquiring the company in 2011.

Read more at bhpbilliton.com 

BHP Eagle Ford Gathering Line Closure Operations Impact

According to BHP, production is continuing in the Eagle Ford, despite the interruption from the line closure. The company has increased the use of trucking to deliver product to market, and claims that there should be no significant impact on production.

BHP Eagle Ford Expenditures To Go Down in 2014

Onshore U.S. drilling and development cost BHP $2.4 billion in the second half of 2013. About 75% of this expense or $1.8 billion was spent in the Eagle Ford, mostly in the company’s liquids-rich Black Hawk acreage. The company achieved a 72% increase in production for onshore US liquids in the second half of 2013, which was primarily attributable to the Black Hawk acreage.

In 2014, expenditures are expected to decrease in the second half of the financial year, following a 35% decrease in the company’s active rig count to 26.

BHP Eagle Ford Highlights in Second Half of 2013

  • Eagle Ford gathering line system closed due to corrosion
  • BHP using trucks to deliver product to market
  • $1.8 billion Eagle Ford spending in second half of 2013
  • 72% increase in production for onshore US liquids
  • Active rig count down to 26 – 35% decrease

Phillips 66 Approves Funding for Two Midstream Projects in Southeast Texas – $3 Billion

Projects Will Create 50 Full-Time and 1,000 Temporary Construction Jobs
Sweeny, TX Refinery Phillips 66

Sweeny, TX Refinery Phillips 66 | Click to Enlarge

Funding for two Southeast Texas midstream projects was approved in early February 2014 by Phillips 66’s board of directors. Costs for the construction of a fractionator in Old Ocean, TX, announced in August of 2013, and a liquefied petroleum gas export terminal in Freeport, TX, are an estimated $3 billion combined.

According to Phillip’s 66, the projects will create more than 50 full-time jobs and over 1,000 temporary construction jobs.

Read morePhillips 66 Plans Gulf Coast Fractionator

[Read more…]

Rosetta Resources Plans to Spend $735 Million in the Eagle Ford in 2014

Production Growth of 20-30% Expected in 2014
Rosetta Resources Eagle Ford Acreage Map By Area

Rosetta Resources Eagle Ford Acreage Map By Area | Click to Enlarge

Rosetta Resources will spend approximately tw0-thirds of its $1.1 billion budget in 2014 in the Eagle Ford.

The company will spend $735 million running 4-5 rigs, with plans to drill and complete 90-95 gross wells. Approximately half of the activity will target the Eagle Ford from the company’s Gates Ranch leases.

Read more: Rosetta Acquires Additional Eagle Ford Interests at Gates Ranch

As a result of Eagle Ford and Permian Basin growth, Rosetta expects production to grow 20-30% to 60,000-65,000 boe/d. [Read more…]

Penn Virginia Sells Eagle Ford Midstream Assets to ArcLight Capital – $100 Million

119 Miles of Pipelines in Gonzales and Lavaca Counties Included
Penn Virginia Eagle Ford Operations Update - Dec 2013

Penn Virginia Eagle Ford Operations Update – Dec 2013 | Click to Enlarge

Penn Virginia is selling its natural gas midstream assets in the Eagle Ford to an affiliate of ArcLight Capital Partners (American Midstream) for $100 million.

The deal includes gas gathering, a gas lift system, 119 miles of pipelines and associated facilities in Gonzales and Lavaca counties.
[Read more…]

NET Midstream Gets FERC Approval for NET Mexico Pipeline to Export Eagle Ford Gas

Planning a 48-inch Border Crossing Pipeline Into Mexico
NET Midstream - Mexico Pipeline Map

NET Midstream – Mexico Pipeline Map | Click to Enlarge

NET Midstream has received FERC approval for border crossing facilities that will allow the NET Mexico Pipeline to export Eagle Ford natural gas to Mexico. At capacity, the pipeline could double U.S. natural gas exports to Mexico.

The Net Mexico pipeline is a 42-inch, 124 mile pipeline from Nueces County to Starr County in South Texas.

The pipeline is backed by a 2.1 Bcfd transportation contract with MGI Supply ltd (PEMEX Subsidiary). [Read more…]

Energy Transfer Will Convert an Eagle Ford Gas Pipeline to Liquids to Supply Trafigura Terminal in Corpus Christi

Pipeline Will Have Capacity to Move 100,000 b/d of Crude Oil & Condensate
Trafigura Terminals Eagle Ford Port in Corpus Christi

Trafigura Terminals’ Eagle Ford Port in Corpus Christi | Click to Enlarge

Energy Transfer has reached an agreement with Trafigura for liquids capacity that supports the development of a pipeline supplying the Port of Corpus Christi.

Energy Transfer will utilize existing infrastructure to construct an 82-mile, 100,000 b/d pipeline system from McMullen County to the Port of Corpus Christi. [Read more…]

MENU