Houston-based H2O Midstream said Aug. 21 it acquired produced water infrastructure in Howard County from Corpus Christi-based exploration and production company Sabalo Energy. H2O acquired 37 miles of oilfield water pipelines, 9 saltwater disposal wells and 4 permits to develop additional disposal sites. The Sabalo system already is connected to H2O Midstream’s water-gathering network, and the deal will bring the combined system up to 435,000 barrels per day of disposal capacity, 240,000 b/d of disposal permits and a total of 190 miles of pipelines. H2O also is adding 40,000 b/d of recycling capacity.
The deal includes a 15-year acreage dedication to H2O to provide produced water gathering, disposal and recycling for Sabalo. The acquired assets are located adjacent to H2O Midstream’s existing operations.