The Qatar Investment Authority (QIA) announced on Wednesday that it acquired a significant stake in Oryx Midstream Services (Oryx), the largest privately-held midstream crude operator in the Permian Basin from an affiliate of Stonepeak Infrastructure Partners (Stonepeak).
The total QIA investment in Oryx will be approximately $550mn.
The QIA has committed to invest in the development of Oryx alongside Stonepeak.
Since its founding in 2013, Oryx has established itself as one of the leading midstream operators in the Permian Basin in the Southwest of the United States.
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, Oryxs total transportation capacity will exceed 900,000 barrels per day and access multiple takeaway options, providing customers the differentiated service flexibility they need to maximise 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.
The CEO of QIA, Mansoor al-Mahmoud, commented on the announcement and said: "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 the QIAs 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 the QIA across the US, where the QIA aims to increase investment to $45bn in the coming years.
The CEO of Oryx, Brett Wiggs, said: "The significant investment and commitment from the QIA, alongside Stonepeaks' 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, for his part, said: "We are delighted to have the 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 the QIAs commitment to Oryx meaningfully furthers this goal."
The Qatar Investment Authority is a leading Sovereign Wealth Fund (SWF) in the world that offers economic strength for the future generations of Qatar.
The QIA is a major contributor to realising the Qatar National Vision of 2030, by seeking to diversify and maximise long-term investments and sustainable growth.
Midland-based Oryx Midstream is the largest privately-held midstream crude operator in the Permian Basin.
The company owns and operates a crude oil gathering and transportation system underpinned by nearly one million acres under long-term dedications from more than 20 customers.
The system's 2.1mn barrels of storage and approximately 1,200 miles of in-service and under-construction pipeline span eight counties in Texas and two in New Mexico.
Stonepeak Infrastructure Partners is an infrastructure-focused private equity firm with over $15bn of assets under management and with offices in Houston, New York, and Austin.
