Crestwood Equity Partners has revealed that a 50% equity stake in a Crestwood Permian Basin-owned gas gathering system has been acquired by Shell Midstream Partners. While the transaction is expected to close in this year’s fourth quarter, it will be subject to customary closing conditions and due diligence.
“Crestwood and First Reserve are thrilled to have Shell Midstream as a partner in the Nautilus gas gathering system to support Shell’s long-term Delaware Basin development plans,” Crestwood’s general partner, chief executive officer, president and chairman, Robert Phillips, said.
In the Nautilus system there is a high-pressure header system measuring 24 miles, a pipeline measuring 60 miles and 20 receipt points. The Nautilus system is intended to serve an area measuring 100,000 acres mostly in West Texas in counties such as Ward, Reeves and Loving. It will be extended to reach 194 miles which will consist of centralized compression facilities, high-pressure trunklines measuring 36 miles and low-pressure gathering lines.
The acquisition of an additional stake by Shell Midstream Partners, a master limited partnership created by Royal Dutch Shell, comes in the wake of the oil major announcing that it would be eliminating over 400 employment opportunities in Holland. This will mostly be in the energy and projects technology operations and is aimed at shifting the business model of the oil major due to the low prices of oil.
The layoffs by the second-biggest oil firm in the world will take place in the course of this year’s fourth quarter and in the first half of next year. Consequently the department will have 25% of the job positions eliminated. Currently Royal Dutch Shell employs approximately 92,000 people all over the world.
As a result of the restructuring plan, some jobs in research will be transferred to Bangalore, India from the Netherlands. This is seen as a cost cutting measure as labor is cheaper in India. Shell will also reduce the number of expatriates who cost more to keep on the payroll. And in the technology and projects operations the layers of management will also be cut with the aim of improving efficiency at a time when the oil sector has come to be viewed as being highly inefficient while the opposite has been happening in the wind, solar, aerospace and automotive sectors.
This is not the first time Shell has cut jobs in recent due to the oil prices as it has previously laid off 12,500.