Permian Basin: the project is worth $1.1 billion
Oxy and SandRidge boost Permian output
US Permian Basin producer Occidental Petroleum is partnering with SandRidge Energy in a $1.1 billion project to boost Oxy’s West Texas oil output by 50,000 barrels per day within five years.
The enhanced oil recovery process will add to the nearly 200,000 barrels of oil equivalent per day that Oxy produced from West Texas’ Permian Basin in 2007, and will boost its proved reserves of oil by 500 million barrels.
Under the project, Oxy will own and operate the gas processing plant in Pecos County, Texas, which will be fed by natural gas high in carbon dioxide and produced locally by SandRidge, Reuters said.
At least 450 million cubic feet of CO2 per day will be shipped from the plant to the industry CO2 hub in Denver City, Texas.
Oxy will build a 160-mile (257-kilometre) pipeline to ship the gas to Denver City.
An additional 50 million cubic feet of CO2 per day will come from other SandRidge gas processing plants.