MDU Resources Acquires 50% Ownership In Whiting Oil & Gas’ Processing Plant In Stark County, ND

Whiting Petroleum Corporation has announced that its subsidiary, Whiting Oil and Gas Corporation, sold to Bitter Creek Pipelines, LLC, a subsidiary of MDU Resources Group Inc., a 50% ownership interest in Whiting’s Belfield gas processing plant, gas gathering, oil gathering and related facilities located in Stark County, North Dakota.

The facilities include a newly constructed, state-of-the-industry natural gas processing plant and a natural gas gathering pipeline system connected to the plant. A natural gas residue line that ties into the Williston Basin Interstate Pipeline Company system (an MDU Resources subsidiary) is also included, along with a crude oil gathering system, a crude oil storage terminal and a crude oil pipeline that connects the terminal to the Bridger Pipeline. Whiting will continue to operate the facilities.

The Belfield natural gas processing plant has an inlet processing capacity of 35 million cubic feet per day. The oil terminal is currently under construction, with completion expected in the third quarter of 2012. It will have a storage capacity of 20,000 barrels of oil.

Under the agreement, Bitter Creek paid 60% of the capital costs of the project to date and will pay 60% of certain future capital costs with respect to its 50% ownership. A $66 million payment was made to Whiting at closing for capital and operating costs to date. Fidelity Exploration & Production Company, also a subsidiary of MDU, will dedicate gas production from its development activity in the area to the Belfield gas plant.

James J. Volker, Whiting’s Chairman and CEO, commented, “We are pleased to have MDU Resources Group participate in the Belfield gas plant and the associated facilities and gathering systems. This agreement will free up capital for Whiting’s high growth drilling operations, particularly in the Williston Basin, and provide MDU access to processing and gathering capacity for its development in the area.”

Advertisements

Author: montanaoilreport

After my first job at a newspaper -- delivering papers for the Jackson (TN) Sun, ink was in my veins. Since the 1970's I've worked in every area of the Printing and Publishing industry, with most of that time spent in the pressroom. In 2008 I moved to Montana and purchased the Sun Times of Fairfield (fairfieldsuntimes.com). In 2011 I realized that most media outlets were either ignoring, or attacking, the growing oil and gas industry in Montana, so I started the Montana Oil Report as the source of information on this important industry.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s