ConocoPhillips’ New Zia Hills Facility Cuts Costs, Footprint & Emissions

Excited to share a major milestone from one of the Permian Basin’s top operators—ConocoPhillips has brought its Zia Hills Central Facility 2 (CF2) online in the Delaware Basin.

This next-gen facility is a game changer:
30,000 bbl/d oil and 75,000 bbl/d water capacity
✅ Centralized design streamlining operations across multiple pads
✅ Reduced emissions, surface footprint, and operating costs
✅ Built on time, under budget, and with zero recordable injuries

CF2 reflects ConocoPhillips’ long-term strategy for scalable, centralized development in New Mexico—and it’s positioned to handle production from 300–400 future wells.


Permian Account Directory – $10

Includes: Account Name, Phone, Address, Website, Wells Drilled……


Project Overview

  • Asset: Zia Hills, New Mexico (13,000-acre Delaware Basin East unit)
  • Facility: Zia Hills Central Facility 2 (CF2)
  • Operational Since: January 2024
  • Built Adjacent to: CF1 (Central Facility 1)


⚙️ Processing Capacity

MetricCF1CF2
Oil (bbl/d)18,00030,000
Water (bbl/d)30,00075,000
Natural Gas (MMscf/d)120 (shared capacity)120 (shared capacity)

💰 Economic & Operational Advantages

  • Centralized Design:
    • Multiple well pads tie into one facility (vs. individual lines)
    • Streamlines oil/gas flows and reduces pipeline infrastructure
  • Cost Reduction:
    • Central bank of electric compressors replaces pad-level units
    • 200+ acres saved via smaller surface footprint
    • Lower water off-take costs
  • Improved Flexibility:
    • Better flow stability = stronger position when negotiating with buyers
  • Zero Recordable Injuries:
    • 174+ pieces of equipment installed by 30+ contractors without incident

🌱 Environmental & Regulatory Alignment

  • Electric Compressors: Replaces gas-driven units
  • Vapour Recovery Units (x4): Reduces emissions
  • Optimized Heater Treaters: Improves efficiency and emissions profile
  • Complies with New Mexico emissions regulations

🔭 Future Outlook

  • 300–400 new wells expected to integrate into CF2
  • Facility lifespan: ~15 years of expected production intake
  • Supports: ConocoPhillips’ centralised development strategy in the Lower 48

🗣️ Notable Quotes

  • Juan Casanas, Facilities Engineer: “One of the best facilities we’ve ever built.”
  • Mark Woodward, Reservoir Engineer: Enhanced economics justify initial investment.
  • Hal Mead, Asset Manager: Project completed on time, under budget, with no injuries.

Oil & Gas Contact Directory

Leave a Reply

Your email address will not be published. Required fields are marked *