Hess Infrastructure Partners, a midstream joint venture between Hess Corp. and Global Infrastructure Partners, has closed the $225 million cash deal for Hess’ Bakken water services business.
The water services business includes substantially all of Hess’ Bakken produced-water gathering assets and saltwater disposal services in North Dakota. The system currently consists of over 150 miles of existing Hess water gathering pipelines capturing roughly 30,000 barrels per day of produced water, Kallanish Energy reports.
The water services business is supported by a long-term contract that includes minimum volume commitments for both produced water gathering and disposal services, and annual tariff rate recalculations for the produced water gathering services.
In addition, on Feb. 26, Hess Infrastructure announced it was acquiring roughly 75 miles of produced water gathering pipelines from Summit Midstream Partners. This acquisition will be incorporated into Hess Infrastructure’s existing long-term water contract and is expected to close by April 1.
This post appeared first on Kallanish Energy News.