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<\/p>\nWilliams has finalized an upstream joint venture with Crowheart Energy in the Wamsutter Field of the Greater Green River Basin of Wyoming.<\/p>\n
The joint venture involves the consolidation of three legacy operating assets consisting of over 1.2 million net acres, over 3,500 operating wells, and more than 3,000 potential development locations.<\/p>\n
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The transaction consolidates the legacy BP, Southland and Crowheart upstream assets into one contiguous footprint, delivering operational cost savings and synergies, while unlocking significant long lateral development inventory.<\/p>\n
Williams\u2019 strategic efforts to combine the Wamsutter Field reserves will enhance the value of its midstream and downstream natural gas and NGL infrastructure.<\/p>\n
\u201cWe are excited to enter into this joint venture with a strong and well-capitalized operator with an ownership structure that will reduce costs, stimulate development activity, drive volumes and position our midstream and downstream assets for growth,\u201d said Chad Zamarin, Williams\u2019 senior vice-president of corporate strategic development. \u201cToday\u2019s announcement is the culmination of Williams\u2019 consolidation efforts in the Wamsutter Field. With Crowheart as our operating partner, we position the upstream platform with a proven in-basin operator who is committed to optimizing and developing the consolidated assets.\u201d<\/p>\n
Under the joint venture, Crowheart will operate the parties\u2019 consolidated upstream position and Williams will continue to operate and retain full ownership of its midstream assets. Williams will also retain real estate, surface and other rights designed to enable further expansion of midstream and renewable energy opportunities in Wyoming. The existing large scale and efficient infrastructure will allow this resource to be produced in an environmentally responsible manner.<\/p>\n
Initially Williams and Crowheart will own 75% and 25% respective interests, although Crowheart may increase its ownership through performance under a development program designed to enhance the value of Williams\u2019 midstream assets.<\/p>\n
The upstream assets will be subject to a single, expanded fixed fee gathering and processing agreement, eliminating commodity price sensitive contracts while combining numerous existing agreements into a simplified structure.<\/p>\n
NGL volumes from each of the legacy upstream assets will be combined and dedicated to Williams, adding transport volumes on Overland Pass Pipeline (OPPL) and Bluestem, and increasing downstream fractionation volumes at attractive rates.<\/p>\n
Residue gas from the jointly held assets will be aggregated for downstream marketing and transportation, creating opportunities for enhanced margin as well as downstream fee-based revenue.<\/p>\n
\u201cThe Wamsutter Field consolidation is a transformational milestone for the Greater Green River Basin. It provides the corporate scale, field operating efficiencies, water infrastructure backbone and new well development platform needed to make our basin an important and growing source of natural gas, natural gas liquids and oil,\u201d said Crowheart chairman Robb Turner. \u201cOur team looks forward to working with Williams, our local communities, regulators and service providers to realize the full potential of this exciting transaction.\u201d<\/p>\n