Velocity Midstream to Build Crude Pipeline in SCOOP Play
The SCOOP play in central Oklahoma is driving pipeline expansion. Velocity Midstream Partners LLC announced Nov. 12 that its subsidiary Velocity Central Oklahoma Pipeline LLC will construct a crude oil gathering and transportation system in the fairway of the prolific region.
Oklahoma City-based exploration and production company Continental Resources Inc. has executed an agreement to be the customer of the system. Continental is a Top 10 independent oil producer in the United States and is the dominant leaseholder in the SCOOP with approximately 471,000 net acres.
Velocity’s system will gather crude oil from points designated by Continental Resources in Grady, Stephens, Garvin and McClain counties and provide transportation and interconnections to downstream pipelines with direct access to Cushing. The crude oil pipeline and terminals are under construction and will be placed into service early second quarter of 2015. This is the first phase of Velocity’s infrastructure development plans to serve key producers involved in the rapidly developing Woodford and Springer shales underlying the SCOOP play.
“We’re very pleased to be working with Continental to launch our SCOOP crude pipeline project. Continental is a highly successful producer with a great track record in discovering and developing these plays,” said Velocity CEO Rick Wilkerson. “Velocity’s experience in developing crude oil pipelines and gathering systems in the Eagle Ford makes Velocity uniquely qualified to construct and operate these systems.”
Velocityis an independent midstream service provider that engineers, constructs and operates crude oil and natural gas gathering and transportation solutions. Velocity was formed in 2008 by Wilkerson and Mike Parker, and Van Nguyen, vice president of engineering, joined the company in 2010. Velocity partnered with Energy Spectrum Capital in 2008.
Tags: Oklahoma, SCOOP play, Springer shale, Velocity Midstream, Woodford shale
