Nuverra to build 150-mile water pipeline for ExxonMobil’s North Dakota operations

Nuverra Environmental Solutions has secured a contract from Exxon Mobil subsidiary XTO Energy to build a 150-mile water pipeline and provide related services for Exxon’s North Dakota operations in the US.

Under the agreement, Nuverra will build the pipeline in McKenzie County and provide produced water gathering and disposal services, as well as fresh water delivery.

Nuverra Environmental will provide the services under a long-term, fee-based gathering agreement.

The water pipeline network is expected to cost between $125m and $150m, which has been estimated based on current engineering and construction specifications.

Construction on the pipeline water gathering system is expected to start in May 2015 and completed in the fourth quarter of 2015.

Nuverra chairman of the board and CEO Mark Johnsrud said: "The construction of this pipeline represents a transformational step in our effort to become a fully integrated environmental solutions provider in North Dakota.

"We are pleased to extend our relationship with XTO to serve its growing water management needs.

"With significant increases in well density and growing water volumes, we believe our pipeline network represents an important complement to our transportation capabilities and provides sustainable and efficient water gathering and delivery solutions for our customers."