ARM Midstream to Build Crude Oil Gathering System in Bakken, Three Forks
A new crude oil gathering system will provide increased takeaway capacity for the Bakken and Three Forks region. Asset Risk Management (ARM) announced Oct. 14 that its subsidiary ARM Midstream will construct the gathering system in McKenzie County, North Dakota. The project marks the first phase of ARM’s initiative to provide direct access to market for producers in the prolific area.
ARM also announced that Zavanna LLC has executed a letter of intent to be an anchor customer of the system. As an exploration and production company that has been operating in the Williston Basin of North Dakota and Montana since 1981, Zavanna intends to support the project through an acreage dedication in the core of its McKenzie County operations.
In the coming weeks, ARM will commence an open season to gauge market interest in producers making long-term commitments for a new crude oil gathering and transportation pipeline system in the Bakken shale play in North Dakota.
The system will gather crude oil from points in McKenzie County and transport to interconnections with both downstream pipelines and rail takeaway facilities. The open season provides potential shippers with the opportunity to make long-term acreage dedications for crude oil gathering and transportation service over the system.
“We’re very pleased to be working with Zavanna to launch the project,” said ARM CEO Zach Lee. “Zavanna is a highly successful producer with a stellar track record and more than 30 years of operating experience in the Williston Basin.”
ARM is an independent producer services company that provides solutions for more than 90 clients through financial hedging advisory, physical marketing and midstream solutions. The company was formed in 2004 by its founders Gil Burciaga and Zach Lee initially as a financial hedging advisory service for producers. Since its inception, ARM has expanded into physical marketing and midstream.
ARM Energy Management (AEM) markets crude oil/condensate, natural gas and natural gas liquids for producers in all major producing basins throughout the United States. ARM Midstream was formed to serve the growing infrastructure needs of the company’s producer client base. The company and its predecessors have operated multiple midstream assets in Pennsylvania, Texas and Louisiana since 2009.
Tags: ARM Midstream, Asset Risk Management (ARM), Bakken, crude oil, gathering system, Three Forks
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