TPL & bpx energy Agree to Comprehensive Water and Surface Use Agreements

Source: 2/22/2023, Location: North America

Texas Pacific Land Corporation (“TPL”) announced a long-term agreement with bpx energy (“bpx”), a subsidiary of BP P.L.C. (BP), to provide water services and surface access across approximately 270,000 acres in Culberson, Loving, and Reeves Counties, Texas.

Under the agreement, TPL will receive dedicated brackish and treated water sales, certain produced water commitments, and access to produced water for commercial treatment, recycling, and reuse. bpx will receive assured long-term access across a substantial portion of TPL’s vast surface acreage for the continued development of oil and gas and associated infrastructure. The alignment of TPL and bpx will enhance opportunities for bpx to efficiently grow production in the Delaware Basin and generate additional water and surface revenue streams for TPL.

“We are pleased to strengthen our long-standing and productive relationship with bpx, a premier operator with a high-quality, expansive Permian footprint,” said Tyler Glover, CEO of TPL. “Importantly, this will provide both of us with increased operating and commercial certainty across our shared acreage footprints. We look forward to leveraging our existing assets towards delivering essential services across both water and surface as we work to accelerate development activity in a core part of the Delaware Basin, where TPL also owns a sizeable oil and gas royalties position.”

“TPL has long been a key partner for us in the Permian Basin,” said David Lawler, CEO of bpx energy, “This agreement will optimize our operations in the Permian – expanding our world class infrastructure and supporting our delivery of resilient hydrocarbons.”

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