By the OGJ Online Staff
HOUSTON, Mar. 9�Oxy Permian Ltd. plans a tertiary CO2 injection project that will enable it to recover 10 million bbl of oil at its Cogdell Canyon Reef Unit in the Permian basin north of Snyder, Tex.
The injection is slated for later this year. Cogdell is approaching the end of its economic life as a waterflood. The 10-million bbl figure is for the first phase of the tertiary recovery project.
Oxy Permian Ltd. awarded contracts to Kinder Morgan CO2 Co., which will provide the CO2 and l process contaminated produced gas.
Tim Bradley, Kinder Morgan CO2 president, said, his company would supply and transport 175 bcf of CO2 over 10 years.
Kinder Morgan also announced a 20-year processing contract under which it will process contaminated produced gas for a fee, then return the extracted CO2 to Oxy for reinjection.
The processing contract will increase utilization of compression capacity at the Kinder Morgan-operated Scurry Area Canyon Reef Operators Committee unit and also increase utilization of processing capacity at the Snyder Gas Plant, Bradley said.
�The processing contract is an ideal example of two companies partnering together to use existing infrastructure to keep capital costs for new CO2 projects down,� Bradley said.
