U.S. energy service company sells Permian Basin for 1.6 bln dollars

HOUSTON, Jan. 8 (Xinhua) -- Lucid Energy Group, a U.S. oil and gas service company, said Monday that it has agreed to sell its Permian Basin unit for 1.6 billion U.S. dollars to a joint venture owned by the private equity firm Riverstone and the merchant banking division of Goldman Sachs.

The Permian Basin, one of the largest oil and natural gas reserve area in the United States, is a sedimentary basin mainly in the western part of the U.S. state of Texas and the southeastern part of New Mexico.

The Dallas midstream company said it plans to sell its Lucid Energy Group II, which operates midstream assets in Permian Basin, including two major natural gas gathering and processing systems and natural gas pipelines of 2,720 km with a capacity of 585 million cubic feet of gas per day.

Lucid's deal with Riverstone and Goldman is expected to firm up and conclude in the first quarter of 2018.

The company also expects to finish construction of more pipelines with a processing capacity of 200 million cubic feet per day by the middle of 2018. Enditem