Posted on August 08, 2019

Oryx Midstream Services (Oryx), the largest privately-held midstream crude operator in the Permian Basin, announced today that an affiliate of Qatar Investment Authority (QIA) has acquired a significant stake in Oryx from an affiliate of Stonepeak Infrastructure Partners (Stonepeak). In addition, QIA has committed to invest in the development of Oryx alongside Stonepeak. The total QIA investment in Oryx will be approximately $550 million.

Since its founding in 2013, Oryx has established itself as one of the leading midstream operators in the Permian Basin in the Southwest US. The Oryx system transports crude oil to market hubs for ultimate delivery to the Gulf Coast. The system helps supply domestic refineries and the growing US export market. Upon completion of the remaining part of the system under construction, Oryx's total transportation capacity will exceed 900,000 barrels per day and access multiple takeaway options, providing customers the differentiated service flexibility they need to maximize the value of their production. The Oryx team is committed to a high standard of safety and environmental responsibility as it provides consistent, reliable service for its customers.

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The CEO of QIA, Mansoor Al-Mahmoud, commented: "We believe that Oryx represents a strong midstream platform with tremendous growth potential, and we look forward to working with our new partners at Stonepeak. This acquisition is a further demonstration of QIA's strategy to increase the size of our US portfolio, and to invest more in major infrastructure projects." The partnership is the latest in a series of investments undertaken by QIA across the US where QIA aims to increase investment to $45 billion in the coming years.

The CEO of Oryx, Brett Wiggs, commented, "The significant investment and commitment from QIA alongside Stonepeak's strong operational and capital support will allow us to continue to grow our footprint in the Permian Basin and deliver the highest level of service to current and future customers. We are thrilled to lead Oryx in partnership with these world-class investors." The Co-founder and CEO of Stonepeak, Michael Dorrell, commented, "We are delighted to have QIA investing alongside Stonepeak in supporting Oryx's continued development. We believe Oryx is a uniquely positioned strategic platform and a core North American infrastructure asset. Stonepeak and Oryx remain focused on providing critical midstream services to accommodate growing Permian production, and QIA's commitment to Oryx meaningfully furthers this goal."

White & Case LLP served as legal advisor to QIA. Sidley Austin LLP served as legal advisor to Stonepeak.  

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