Crestwood Midstream Partners would be acquiring privately-held Arrow Midstream Holdings in a deal worth USD 750 million. The purchase would make Crestwood the largest pipeline operator in the Bakken shale field in North Dakota. The transaction would be completed in the fourth quarter this year.
After the acquisition, Crestwood would be processing an estimated 18% of the crude oil output in the Bakken. Shale production in the Bakken had made North Dakota the most prolific oil producer after the state of Texas. It had also assisted the US in increasing its domestic output of oil. North Dakota's production was deemed even greater than the oil produced in Ecuador, an OPEC member nation, and Britain.
A few months ago, Crestwood, Inergy and Inergy Midstream joined forces to form a company valued at USD 7 billion. The firm was established to address the growing demand in the Bakken region, Reuters reported. Arrow had more than 460 miles of pipeline in the area. The pipelines carry 50,000 barrels of oil and 15 million cubic feet on a daily basis.
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