ConocoPhillips has significantly enhanced its Zia Hills asset in New Mexico with the launch of Zia Hills Central Facility 2 (CF2), a state-of-the-art processing facility that optimizes operational costs, expands capacity, reduces surface footprint, and curbs emissions.
CF2, operational since January 2024, integrates with the existing CF1 facility within the 13,000-acre Delaware Basin East unit. The new facility processes up to 30,000 barrels of oil per day and 75,000 barrels of water per day, compared to CF1’s capacity of 18,000 barrels of oil and 30,000 barrels of water daily. Both facilities can process 120 million standard cubic feet of natural gas per day.
Delaware Basin East Asset Manager Hal Mead noted the project was completed on time and under budget with zero recordable injuries, crediting success to comprehensive Operations team involvement throughout the project.
Economic and Operational Benefits
CF2’s centralized design delivers significant advantages by allowing multiple well pads to feed into one location rather than requiring individual pipeline connections. This creates steady oil and gas flows, increasing commercial flexibility and enabling ConocoPhillips to negotiate better rates with third-party buyers.
The facility reduces water off-take costs and operates more efficiently through a centralized bank of electric compressors that service multiple wells, replacing the need for dedicated compressors at each pad. Additionally, CF2 reduces the overall surface footprint by more than 200 acres through smaller well facility pads and reduced equipment requirements.
Despite COVID-19 challenges including remote meetings and supply chain disruptions, more than 30 contractors completed the project safely, installing over 174 pieces of equipment without a single recordable incident.
Environmental Features and Future Outlook
CF2 incorporates environmental enhancements aligned with New Mexico regulations, including electric compressors instead of gas-powered alternatives, four Vapor Recovery Units, and optimized heater treater systems to minimize emissions. Staff Facilities Engineer Juan Casanas described CF2 as “one of the best facilities we’ve ever built.”
The facility benefits from extensive operator feedback and design optimization led by Stabilizer Specialist Elijah Lindsey, ensuring user-friendly operations. ConocoPhillips has identified 300 to 400 future wells that can integrate into CF2, with Reservoir Engineer Mark Woodward noting the enhanced economics more than justify the initial investment.
CF2 is expected to receive new production streams for approximately 15 years, supporting ConocoPhillips’ centralized development strategy in the Delaware Basin and representing a significant milestone for the company’s Lower 48 business unit.
For more information visit www.conocophillips.com
