Centurion Pipeline L.P. (Centurion), a subsidiary of Occidental Petroleum
Corporation (Oxy), is an oil-gathering, common carrier pipeline and storage
system with approximately 2,750 miles of pipelines from southeast New Mexico
across the Permian Basin of southwest Texas to Cushing, Oklahoma. The system
has a current throughput capacity of about 350,000 barrels per day (Bpd) and 5
million barrels of active storage capability. Also, sixty-four truck unloading facilities
are located at various points along the system, which allow for additional volumes
to be delivered into the pipeline.
The Centurion Control Center in Houston continually monitors the crude gathering,
pipelines, tankage and associated crude oil movements using the Supervisory
Control and Data Acquisition (SCADA) system. All monitored locations are
scanned by the SCADA system every five to seven seconds, and the collected
data – including pressures, flow rates, tank level, meters, temperatures, gravities,
over/shorts, equipment status and alarm conditions – are transmitted to the
Control Center, where operations controllers have the ability to start or stop
systems and open or close valves to ensure that the entire pipeline system is
functioning efficiently and within safe operating parameters. Centurion also
maintains a backup control center in Midland, which can be staffed and running
should an emergency in Houston necessitate a shift in control to Midland.
Two key transactions were instrumental in creating this asset. The first occurred
Jan. 31, 2004, when Oxy acquired, through Centurion, an oil-gathering and
pipeline system in the Permian Basin from ExxonMobil. This provided 1,200 miles
of active pipelines and a throughput capacity of approximately 160,000 Bpd, as
well as storage and terminaling facilities in Midland and 3.3 million barrels of
storage throughout the system. In the second transaction, on June 30, 2007,
Centurion purchased from British Petroleum the West Texas Pipeline System,
comprising 1,550 miles of active pipelines and a throughput capacity of
approximately 190,000 Bpd. The Centurion Pipeline and the West Texas Pipeline
System were combined in the fourth quarter of 2007.
Both the main office and Control Center are located in Houston, Texas, with an
operations office in Midland, Texas. Centurion maintains field offices in Andrews,
Odessa, Seminole, Snyder and Levelland, Texas, as well as offices in Lovington,
New Mexico, and El Reno, Oklahoma. Centurion Pipeline has a staff of
approximately 180 people who operate, maintain, repair, control and oversee the
daily movement of crude oil on the pipeline. In 2009, Centurion plans to add
several facilities at various points along the pipelines, including Cushing,
Oklahoma, that will enhance Centurion’s ability to serve additional market
locations.