Baytex, Gibson enter Pembina Duvernay infrastructure, dedication agreement

Baytex Energy Corp. and Gibson Energy Inc. have partnered to develop infrastructure in the Pembina Duvernay in Canada. 

Along with an executed, long-term take-or-pay agreement, the partnership supports Baytex’s ongoing development in the light-oil Pembina Duvernay asset and provides committed market access while expanding Gibson’s liquids infrastructure footprint and increases committed volumes to its Edmonton terminal through an area dedication, the companies said in a joint release Mar. 11. 

Continued commercialization of the Pembina Duvernay asset is under way, and 9 net wells are expected onstream this year, according to Baytex’s website. The company advanced operations with a successful 7-well program in 2024 with a 21% improvement in drilling efficiency and a 10% improvement in drilling costs compared with the prior year. Production in fourth-quarter 2024 was 7,300 boe/d (82% liquids).

Under the initial 10-year agreement, Gibson will invest about $50 million of capital expenditures and receive an area of dedication and established return on investment. 
Baytex will construct the infrastructure and have operating responsibility. Construction has begun and is expected to be completed by this year’s fourth quarter.