WPX Energy Permian, subsidiary of Devon Energy, and WaterBridge NDB said last week they formed a partnership to create the largest private water infrastructure system in Stateline area of Delaware Basin. Devon received 30 percent interest in NDB Midstream and committed all its produced water within a large area of mutual interest, including initial dedication of 52,000 acres. Devon also committed 18 saltwater disposal wells with 375,000 b/d of permitted capacity and 210 miles of produced water pipelines for gathering, transportation, disposal and reuse.
NDB Midstream will develop a large-scale water transportation, handling and recycling system in Loving County in Texas and Eddy and Lea counties in New Mexico. The system primarily will be located on land owned by DBR Land, land management platform of private equity firm Five Point. WaterBridge NDB also is a portfolio company of Five Point, which will fund a portion of construction of NDB Midstream.
Greg Horne, vice president of Devon and NDB Midstream board member, said Aug. 7 the partnership “will provide Devon with a significant increase in permitted water handling capacity, delivering both reliable flow assurance and access to abundant resources and infrastructure to support Devon’s future drilling plans and the company’s produced water reuse and recycling operations.” Devon holds 400,000 net acres in Delaware Basin in what it calls its “franchise” asset.