(MENAFN - ProactiveInvestors - Australia) Petroleum's (ASX: ELK) environmental assessment for the Grieve enhanced oil recovery project that targets up to 24 million barrels of oil has been approved by the United States Government.
Operator Denbury Resources, an experienced EOR producer, will now be able to mobilise construction crews for the installation of a new carbon dioxide supply pipeline to the field with first CO2 injection expected in November 2012.
First oil from the project is expected in the middle of 2014.
Other work to be carried out include the installation of CO2 distribution and production gathering throughout the Grieve field; demolition of existing but superfluous processing and storage facilities; and site works for the new processing and storage facilities.
Sixteen existing well workovers have already been completed, including nine CO2 injection wells and three production wells.
Besides increasing oil recovery from the Grieve field, the CO2 injection will also serve to sequester CO2 gas.
Denbury owns the largest reserves of CO2 used for tertiary oil recovery east of the Mississippi River and currently produces more than 30,000 barrels of oil equivalent per day from its CO2 EOR projects.
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