A North Dakota company has announced plans to sell up to 4,500 rigs in the state this year as it faces steep production declines.
The Dakota Petroleum Corporation announced in a filing with the Securities and Exchange Commission Monday that it is planning to sell 4,750 rigs by the end of the year.
The company, which was founded in 2011, has about 2,500 employees in North Dakota.
North Dakota is the second-largest producer of oil in the United States after Texas.
Dakota Petroleum Corporation’s plan to buy up to 5,500 oil rigs would make it the fourth-largest oil producer in the country by rig count, behind Texas and Oklahoma.
The company’s plans to continue buying rigs come after the company announced in January that it planned to cut nearly 2,000 jobs at its North Dakota refinery, which is one of the state’s largest.
The refinery was shut down in December and is the only one that is used to process Bakken crude oil.
“Dakotas commitment to production growth is driven by our ability to maintain and enhance our existing facilities, which include our refining facilities, our distribution and processing centers, and our oil storage facilities,” DPA CEO Bob Taylor said in a statement Monday.
“In light of this fact, our recent announcement of the planned shutdown of our refinery will provide a significant opportunity for our shareholders to receive continued access to our oil resources.”