Occidental Secures 2 Million Tons Of CO2 Annually For Permian Oil Recovery

(MENAFN- Trend News Agency) BAKU, Azerbaijan, November 10. Occidental has signed long-term agreements with two project developers to secure approximately 2 million metric tons of carbon dioxide (CO2) annually from natural gas processing facilities in the Delaware Basin for enhanced oil recovery operations in the Permian Basin.

According to the company, the two projects will involve the construction of infrastructure to capture, transport and deliver CO2 to Occidental. The developers will finance and build the required facilities, the company said.

The agreements cover CO2 supplies from existing and new natural gas processing plants. Combined capture and transportation capacity could eventually increase to 4 million metric tons per year.

Both projects are subject to final investment decisions, with initial CO2 deliveries to Occidental expected in 2029.

The developments also envisage nearly 100 miles of new CO2 pipelines in the Delaware Basin, connecting to the existing pipeline network supplying the Permian Basin. The new infrastructure is being designed to accommodate additional volumes from natural gas processing plants and other industrial sources.

Occidental said the additional supplies would diversify its CO2 portfolio and support enhanced oil recovery (EOR), a process that uses injected carbon dioxide to increase crude oil production from existing fields.

"Securing reliable, long-term sources of CO2 supports Occidental's advanced recovery strategy to extend the productive life of existing fields and enhance recovery across our conventional and unconventional resource base," Vishal Gupta, President and General Manager of EOR Ventures at Occidental, said.

He added that the projects would improve access to cost-effective CO2 supplies and create infrastructure that could connect additional carbon capture projects in the future. Federal incentives under Section 45Q of the US tax code are also expected to support the investments.

Occidental is continuing to pursue supply agreements with other third-party sources of anthropogenic CO2.

Founded in 1920 and headquartered in Houston, Texas, Occidental (Oxy) is an international energy company with major operations in the United States, the Middle East, and North Africa. As one of the largest oil and gas producers in the U.S., Oxy is a market leader in the Permian Basin and a pioneer in Enhanced Oil Recovery (EOR) techniques using carbon dioxide. Through its subsidiary 1PointFive, the company is actively advancing commercial-scale carbon capture, utilization, and sequestration (CCUS) technologies - including Direct Air Capture (DAC) - to support global net-zero goals alongside traditional production operations.

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