Houston oil giant EOG Resources has sold nearly half of its saltwater disposal wells in the New Mexico side of the Permian Basin.
EOG Resources confirmed the sale of 23 saltwater disposal wells and 300 miles of oilfield wastewater gathering pipelines in southeastern New Mexico to Dallas-based Oilfield Water Logistics.
Financial terms were not disclosed but under the deal, EOG entered into a long-term contract with Oilfield Water Logistics for wastewater disposal services.
In a statement, Oilfield Water Logistics CEO Chris Cooper said the deal compliments the company’s current operations and doubles its geographic footprint in the Delaware Basin, an area of the Permian Basin that includes parts of West Texas and southeastern New Mexico.
“We are proud to partner with North American producers to deliver safe, reliable and sustainable solutions that help our customers to achieve new efficiencies and best practices,” Cooper said.
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EOG Resources owned and operated 54 saltwater disposal wells in New Mexico prior to the sale, state records show. The company acquired the oilfield wastewater disposal sites as part of a $2.5 billion deal to buy New Mexico-based Yates Petroleum in September 2016.
The sale of the disposal sites comes comes at a time when exploration and production companies are dealing with growing volumes of oilfield wastewater. Depending on the location, an oil well in the Permian Basin can produce up to 10 barrels of wastewater for each barrel of crude oil extracted.
Many companies are trying to recycle more of that wastewater and reuse it for drilling and completion operations, reducing the volumes that need to be disposed of by injecting it deep underground at saltwater disposal wells.
