Facts:

Occidental Petroleum (Oxy), along with Sandridge Energy, is operating the Century gas processing plant and related pipeline infrastructure in Pecos County, West Texas, which provides CO2 for use in Oxy’s EOR projects in the Permian Basin. The facilities were built by Sandridge and are owned by Oxy, under the terms of an agreement signed in 2008.

Around 5 million tonnes per annum of CO2 are currently being captured from the first train of the plant. This is expected to increase to around 8.5 Mtpa when the second train, now under construction, becomes operational in 2012. Eventually, the project will see at least 3.5 trillion cubic feet of CO2 exploited for EOR in the Permian basin in the long term. 

The captured CO2 is transported via a 160km pipeline, built for the project, from the plant to an industry CO2 hub in Denver City. It is then injected into the Kinder Morgan Permian delivery system.

The high CO2 content natural gas is produced locally by SandRidge Energy, and processed at the Oxy plant, where the CO2 stream is separated and captured

Financing

Oxy is believed to have invested around $1.1 billion in the development of the plant and other infrastructure. No further details are available.

Timing

Occidental Petroleum signed an agreement with SandRidge Energy in 2008 to develop the gas processing plant and related pipeline infrastructure. The first train came online in late 2010, and the second train is due to be operational by 2012.

More information and press releases

Occidental press release on EOR deal, June 2008

Sandridge website information on Century Plant

Occidental Petroleum (Oxy) website

Sandridge Energy

Contacts

Richard S Kline, Oxy media enquiries, 001-310-443-6249, or email richard_kline@oxy.com

Companies involved

Homepage:

http://www.oxy.com/OurBusinesses/OilAndG