Houston-based oilfield water treatment company H2O Midstream recently announced a deal to acquire all wastewater assets from E&P Sabalo Energy for an undisclosed sum.
The deal gives H2O Midstream 37 miles of oilfield water pipelines, nine saltwater disposal wells and four permits for the development of additional disposal wells. The company will now be able to move up to 435,000 b/d of wastewater and to inject 240,000 bbls of this water into saltwater disposal (SWD) wells. Additional development plans include increasing short-term water recycling capacity to 40,000 b/d and longer-term expansions that would allow for recycling of up to 80,000 b/d.
While oil and gas majors don’t seem to have much an appetite for buying up additional Permian production assets in the near term, EnergyMakers anticipates an increase in the number of Permian basin water management deals like this. Each barrel of Permian oil produced brings with it somewhere between two to six barrels of produced water, typically, a fact which helps explain the uptick in SWD demand throughout the basin.
Check back with EnergyMakers for updates to the water management picture in the Permian.
