US midstream crude company Oryx Midstream raises $550m from QIA

Oryx Midstream Services, a US midstream crude company in the Permian Basin, has secured an equity investment of around $550 million from an affiliate of Qatar Investment Authority (QIA), a Qatari state-owned investment firm.

Qatar Investment Authority has acquired a significant stake in Oryx Midstream Services from an affiliate of Stonepeak Infrastructure Partners. The Qatari investment firm has agreed to invest in the development of the midstream crude company alongside Stonepeak.

Founded in 2013, Oryx Midstream Services is engaged in the transportation of crude oil to market hubs for delivery to the Gulf Coast. The transportation system of the midstream crude company caters to domestic refineries and the growing US export market.

Oryx Midstream Services said that after completing the remaining part of the system under construction, its total transportation capacity will cross 900,000 barrels per day and access multiple takeaway options, to offer customers the differentiated service flexibility required to maximize the value of their production.

Oryx Midstream Services secures investment from Qatar Investment Authority. Photo courtesy of Qatar Investment Authority.

In April 2019, Stonepeak Infrastructure Partners agreed to acquire Oryx Midstream Services from Affiliates of Quantum Energy Partners, Post Oak Energy Capital, Concho Resources, WPX Energy and other investors for about $3.6 billion.

Brett Wiggs – Oryx Midstream Services CEO said: “The significant investment and commitment from QIA alongside Stonepeak’s 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.”

For Qatar Investment Authority, the acquisition of the stake in the midstream crude company is the latest in a series of investments it has taken up across the US where it intends to increase its investment in the coming years to $45 billion.

Mansoor Al-Mahmoud – Qatar Investment Authority CEO 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 QIA’s strategy to increase the size of our US portfolio, and to invest more in major infrastructure projects.”

For Qatar Investment Authority, White & Case was the legal advisor for the transaction, while Sidley Austin was the legal advisor to Stonepeak Infrastructure Partners.