Occidental Signs Agreements to Secure 2 Million Tons of CO2

Occidental signed long-term agreements with two project developers to secure carbon dioxide captured from natural gas processing facilities in the Delaware Basin. The company will use the captured CO2 for enhanced oil recovery operations in the Permian Basin.

The projects are expected to capture and transport approximately 2 million metric tons of CO2 annually, with the potential to expand to 4 million metric tons. The developers are responsible for funding and constructing the infrastructure, which includes nearly 100 miles of new CO2 pipelines connecting to the existing Permian Basin network. Initial shipments are anticipated in 2029, pending final investment decisions.

Vishal Gupta, President and General Manager of EOR Ventures at Occidental, stated that the agreements support the company's strategy to extend the productive life of existing fields and diversify its CO2 supply. He noted that federal 45Q incentives provide important support for these investments.