Oilfield Water Logistics acquires assets in New Mexico

Oilfield Water Logistics (OWL), a provider of produced water infrastructure solutions in the Permian and Powder River Basins of  the US, has bought a portfolio of operating assets in New Mexico from an undisclosed Permian Basin oil producer.

The assets include 23 saltwater disposal wells and 300 miles of water gathering pipelines.

Financial details of the acquisition have not been disclosed.

The undisclosed seller also signed a long-term contract with OWL for water infrastructure solutions. This contract extends the existing customer relationship whilst allowing OWL to provide the advantages of the assets to other exploration and production (E&P) customers in the region.

OWL CEO Chris Cooper said: “This acquisition complements our current operations in the Northern Delaware Basin, doubling OWL’s footprint and enhancing our capabilities and long-term value proposition for customers.

“E&P companies increasingly face operational and logistical challenges related to the transportation, re-use and disposal of produced water. We are proud to partner with North American producers to deliver safe, reliable and sustainable solutions that help our customers to achieve new efficiencies and best practices.”

OWL was advised by Scotiabank, Jackson Walker, and King & Spalding.

Set up in 2014, OWL’s water infrastructure platform in the two basins provide infrastructure supporting oil production across the midstream water value chain.