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Newfield Pipeline Pact

It's with MarkWest.

Newfield Exploration


said it signed an agreement with natural gas processor

MarkWest Energy Partners

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to construct and operate gathering pipelines and related facilities associated with the development of Newfield's Woodford Shale Play in the Arkoma basin of southeastern Oklahoma. The initial term of the agreement is 15 years with an option to renew.

MarkWest plans to invest up to $175 million by the end of 2007 and up to $350 million over the next four years to build gathering infrastructure of about 200-square miles in a four county region. The gathering system will fully support Newfield's drilling efforts over its entire operating position in the Woodford Shale.

The new gathering system will be designed to provide low-pressure and highly reliable gathering, compression, dehydration and treating services. The gathering infrastructure will include more than 400 miles of large diameter pipeline and 100,000 horsepower of compression to provide a takeaway capacity in excess of 500 MMcf/d.

Newfield expects to increase its operated rig count from six rigs currently to as many as 13 rigs by year-end 2006 and to as many as 20 rigs by year-end 2007.

This story was created through a joint venture between and IRIS.