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Matador's Delaware Basin JV starts up crude pipeline system in New Mexico

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Matador's Delaware Basin JV starts up crude pipeline system in New Mexico

A subsidiary of Matador Resources Co.'s midstream joint venture San Mateo Midstream LLC placed into service its crude oil gathering and transportation system in New Mexico, bringing Matador's operated Delaware Basin oil production on pipeline to about 65%.

The Rustler Breaks pipeline system comprises about 17 miles of 10-inch diameter crude oil gathering and transportation pipelines running from Eddy County, N.M., to an interconnect with Plains Pipeline LP, a subsidiary of Plains All American Pipeline LP, also in Eddy County, according to two separate Dec. 19 releases.

San Mateo Black River Oil Pipeline LLC's startup of the Rustler Breaks pipeline system enables Matador to have on pipe almost all of its oil production from the Rustler Breaks and Wolf asset areas in the Delaware Basin. The move would also allow San Mateo Midstream to provide services across all three production streams of crude oil, natural gas and produced water.

The completion comes on the heels of a successful open season, which commenced earlier in 2018, to seek commitments from shippers for crude interstate transportation service on the Rustler Breaks pipeline system.

San Mateo Midstream in January signed a joint tariff agreement with Plains, under which they would offer crude transportation services to third-party producers within a joint development area of about 400,000 acres in the Rustler Breaks area of Eddy County, from wellhead to Midland, Texas, and other markets.

Matador is an exploration and production company focused on the Delaware Basin, with additional operations in the Eagle Ford, Haynesville and Cotton Valley shale plays. San Mateo Midstream, a joint venture between the subsidiaries of Matador and Five Point Energy LLC, provides midstream transportation, gathering and processing solutions in the Delaware Basin, with Matador as the anchor customer.