Bayou Midstream has completed a series of transactions in the western Bakken Shale.
An affiliate of Bayou Midstream acquired affiliates of NorthStar Midstream, with assets located in McKenzie County, ND.
The acquired assets include a 23-mile crude oil pipeline, providing market access for producers and marketers in the Western Bakken with connectivity to DAPL, as well as 660,000 barrels of crude oil storage located at the Alexander and East Fairview terminals.
Bayou Midstream is actively evaluating gathering and storage expansions across the acquired footprint. The assets also include rail connectivity and a high-speed frac sand transloading terminal with 22,500 tons of silo storage space to facilitate increasing well completion activities across the Bakken region.
In addition, Bayou Midstream secured an expanded long-term acreage dedication with Kraken Oil & Gas, for crude oil gathering for Kraken’s active development programme in Richland County, MT. Bayou Midstream has been providing crude oil gathering in the area since 2019 and looks forward to expanding their gathering footprint with one of the Bakken’s premier operators.
Bayou Midstream is currently constructing the Fairview Connector pipeline which will connect Bayou Midstream’s crude oil gathering system in Richland County, MT, to the newly acquired assets in East Fairview, ND. The pipeline and combined system will provide enhanced takeaway for growing production in the Western Bakken. Bayou Midstream anticipates the pipeline to be in-service by Q4 2022.
Travis Roby, CEO of Bayou Midstream, said: “We are excited about the expanded crude oil gathering dedication with Kraken, the closing of the Bakken NorthStar Midstream assets, and our current construction projects connecting the legacy Bayou Midstream assets and the newly acquired system. This combined system is a win for our producer partners as this growth will enhance their wellhead to market connectivity, operational integrity, and our ability to serve their needs.”
Greg Davis, partner at EIV Capital, said: “We were pleased to continue our support of the Bayou team as they executed these strategic transactions to expand their footprint in the western Bakken. Since its formation, Bayou has demonstrated a keen focus on safe, reliable operations and customer service for its producers and these transactions allow Bayou to further its position as the midstream provider of choice in the region.”
For more information visit www.bayoumidstream.com