Tamar Hallerman
GHG Monitor
09/21/12
Denbury Resources signed a deal with late this week with Exxon Mobil Corp. that could pave the way for more carbon capture, utilization and storage projects for the pipeline giant. Denbury Onshore LLC, a subsidiary of Denbury Resources, and Exxon subsidiary XTO Energy inked an exchange agreement Sept. 20 that could lead to an expansion of CO2 enhanced oil recovery operations for Denbury. In exchange for 196,000 acres in assets in the Bakken Shale play in North Dakota and Montana, Denbury will receive $1.6 billion and two oil fields in Texas and Wyoming that are ripe for CO2-EOR and are located near existing or planned Denbury CO2 pipelines. Denbury said it also agreed in principle to purchase an interest in CO2 from Exxon’s LaBarge field in Wyoming, a naturally-occurring source of CO2 that could also help boost the company’s CCUS operations in the region. Denbury did not respond to a request for comment as of press time.
For more detailed information on the deal and what it could mean for Denbury’s CCUS operations, please check back to next week’s issue of GHG Monitor.
