A Marathon Oil Corp. subsidiary struck a long-term agreement with the Delaware Basin-focused midstream company Lucid Energy Group LLC for natural gas gathering and processing services for Marathon's production in southeast New Mexico.
Marathon Oil Permian LLC dedicated all its operated acreage in Lea County, N.M., and part of its operated acreage in Eddy County, N.M., under a long-term services agreement with Lucid, according to a Sept. 5 news release. Lucid plans to expand its gathering and compression infrastructure network to accommodate Marathon's growing production.
Lucid is set to commission a 200-MMcf/d cryogenic processing plant called Red Hills III at its Red Hills gas processing complex in Lea County, which would help support new commercial agreements such as Marathon's. Red Hills III, Lucid's fifth cryogenic facility in New Mexico, would boost Lucid's total processing capacity in the Delaware Basin to 750 MMcf/d. It is scheduled to begin service in October.
Marathon Oil is a Houston-based producer with positions in the Bakken, Permian Basin, STACK/SCOOP and Eagle Ford Shale resource areas. Lucid was created through a joint venture of Riverstone Global Energy and Power Fund VI LP, which is an investment fund managed by Riverstone Holdings LLC, and investment funds managed by the merchant banking division of the Goldman Sachs Group Inc.