QIA affiliate acquires interest in US midstream crude operator Oryx

An affiliate of Qatar Investment Authority (QIA) has purchased a significant stake in US-based midstream crude operator Oryx.

The stake was acquired from an affiliate of Stonepeak Infrastructure Partners. Oryx serves clients in the Permian Basin.

Additionally, QIA has pledged to invest in the development of Oryx alongside Stonepeak. The total investment by QIA will be $550m.

Oryx transports crude oil to markets for final delivery to the Gulf Coast and supports supply to domestic refineries and the US export market.

The remaining part of Oryx’s transport system is currently under construction. Post-completion, the operator’s total transportation capacity will be more than 900,000bpd.

Commenting on the investment, QIA chief executive officer Mansoor Al-Mahmoud 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.”

QIA has undertaken a series of investments in the US in order to bring its investment to $45bn in the next years.

Oryx CEO Brett Wiggs 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.”

White & Case and Sidley Austin acted as legal advisers to QIA and Stonepeak respectively.

In April, Stonepeak signed an agreement to purchase all the assets of Oryx Southern Delaware and Oryx Delaware in a $3.6bn transaction.