Velocity Central Oklahoma Pipeline LLC, a subsidiary of Velocity Midstream Partners LLC (Velocity), entered into a letter of intent (LOI) with CVR Energy Inc. (CVI) related to Velocity's construction of a crude oil gathering and transportation system in the Scoop and Stack plays, Velocity said Sept. 15. Producers in the Woodford, Springer, and Meramec formations will be served. CVI might provide equity, Velocity added.
Oil will be gathered and transported from points in Grady, Stephens, Garvin, McClain, Canadian, Kingfisher and Blaine counties, Okla. It will be transported to CVI's Wynnewood, Okla., refinery and the Cushing, Okla., hub where there is significant storage and pipeline access to its Coffeyville, Kan., refinery.
The new pipeline will let producers in the Scoop separate heavier crude barrels coming from the Springer and Woodford from the lighter condensate barrels coming from the Woodford condensate window. A pipeline extension will be placed in the Stack play, the company added, giving CVI direct access to additional crude from the Woodford and Meramec formations.
Velocity recently constructed a 100,000 barrel per day condensate pipeline through the core of the Scoop for Continental Resources Inc. (CLR). The system has been operating since June.
Velocity Midstream Partners LLC is based in Tulsa, Okla.
CVR Energy Inc. is based in Sugar Land, Texas.
Recommended Reading
Enchanted Rock’s Microgrids Pull Double Duty with Both Backup, Grid Support
2025-02-21 - Enchanted Rock’s natural gas-fired generators can start up with just a few seconds of notice to easily provide support for a stressed ERCOT grid.
ADNOC Contracts Flowserve to Supply Tech for CCS, EOR Project
2025-01-14 - Abu Dhabi National Oil Co. has contracted Flowserve Corp. for the supply of dry gas seal systems for EOR and a carbon capture project at its Habshan facility in the Middle East.
McDermott Completes Project for Shell Offshore in Gulf of Mexico
2025-03-05 - McDermott installed about 40 miles of pipelines and connections to Shell’s Whale platform.
US Drillers Cut Oil, Gas Rigs for First Time in Three Weeks
2025-03-28 - The oil and gas rig count fell by one to 592 in the week to March 28.
E&Ps Pivot from the Pricey Permian
2025-02-01 - SM Energy, Ovintiv and Devon Energy were rumored to be hunting for Permian M&A—but they ultimately inked deals in cheaper basins. Experts say it’s a trend to watch as producers shrug off high Permian prices for runway in the Williston, Eagle Ford, the Uinta and the Montney.