Noble Energy has entered an additional firm sales agreement with an undisclosed buyer, which enhances its Delaware Basin takeaway position in the US.
The new five-year agreement is expected to result in the company’s crude oil reaching the Gulf Coast.
Under the terms of the deal, Noble Energy will pursue firm gross sales of at least ten thousand barrels of oil per day (MBbl/d) beginning this month, before increasing to 20MBbl/d from October for the remainder of the agreement.
The buyer’s existing firm transport capacity to Corpus Christi will initially be used for crude oil sold under the new agreement.
Once EPIC’s crude pipeline is pressed into full service, crude oil sold will be transported by way of Noble Energy’s firm transportation capacity.
In May, Noble Energy finalised a deal with EPIC Pipeline to transport crude oil from its Delaware Basin acreage position to Corpus Christi, Texas.
As per the agreement, the company secured 100MBbl/d of firm capacity on the pipeline for a ten-year period from the startup, which is slated for the second half of next year.
Noble Energy previously signed firm sales agreements for sale of Delaware crude oil to the Gulf Coast or Cushing markets, with 10MBbl/d for the second half of this year and 5MBbl/d for next year.
The company’s basis hedge position includes a total of 20MBbl/d of Midland-Cushing basis swaps for the second half of this year and 27MBbl/d for next year.
