EDDY COUNTY, N.M. — Concho Resources Inc. and Solaris Water Midstream announced on July 31 they would be forming a strategic joint venture focused on water logistics.
Solaris Water will now manage Concho's water gathering, transportation, disposal and recycling for an area of approximately 1.6 million acres, located primarily in Eddy County.
According to the agreement, Concho will contribute 13 salt water disposal wells and approximately 40 miles of large-diameter produced water gathering pipelines. This will be in exchange for money as well as equity ownership in Solaris Midstream Holdings.
The water infrastructure network will help lower operating and well completion costs and provide environmental benefits like less truck traffic and reduced reliance on brackish or fresh water supplies.
“Our joint venture with Solaris will provide effective and responsible water management and recycling solutions across our core position in Eddy County, New Mexico,” said Concho President Jack Harper.
“Solaris is well positioned to deliver a reliable produced water takeaway solution and an innovative and efficient produced water recycling platform.”
“We are committed to providing dependable, low cost produced water handling and water supply solutions to operators across the Permian Basin,” said Solaris Water Chief Executive Officer Bill Zartler.