“Developing a pipeline for oil from the ground”
Oil and gas company Cenovus Energy has announced that it has started development of a pipeline from the oilfield to the ground.
Cenavus announced the pipeline on Monday, and the company says that it will be operational by the end of 2019.
The project, which is part of the company’s “Energy Future” initiative, will transport up to 500,000 barrels of oil per day from the Bakken oilfield in North Dakota to the Gulf Coast, the company said in a statement.
The pipeline will carry oil from Cenivus’ Bakken Oil Sands, which sits about 25 miles east of Bismarck, North Dakota, to a storage facility.
The company says it will produce between 2,000 and 4,000 bpd of oil each day.
The Bakken is currently the world’s largest oil field, producing about 500,00 barrels per day, and Cenus hopes to expand production to 1 million bpd by 2021.
The oil will be transported by a train, Cenvus said.
The announcement comes just days after Cenuvus announced a $2.2 billion deal to buy oilfield development company SOG Energy, which has a pipeline to the Bakker shale.
The deal is the latest in a series of deals between the two companies.
In May, Census acquired oilfield operations company Cessna.
And earlier this year, Cenesys, which operates a pipeline between Texas and the Gulf of Mexico, announced a partnership with Shell.