Occidental Signs Long-Term CO₂ Offtake Agreements to Support Enhanced Oil Recovery Operations
Key Highlights
- ➤Two long-term CO₂ offtake agreements support Occidental’s Permian EOR operations
- ➤Projects expected to capture and transport approximately 2 million metric tons annually
- ➤Combined capacity could expand to 4 million metric tons per year
- ➤Nearly 100 miles of new CO₂ pipelines will connect Delaware Basin sources
- ➤Initial CO₂ shipments anticipated in 2029; projects await final investment decisions
Expert Statements
Vishal Gupta, President and General Manager, EOR Ventures, Occidental
“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, EOR Ventures, Occidental
“The projects, once operational, will help diversify our CO₂ supply, improve access to cost-effective resources and create infrastructure that can connect additional carbon capture projects over time.”
Vishal Gupta, President and General Manager, EOR Ventures, Occidental
“Federal 45Q incentives are an important support for these investments.”
HOUSTON, Nov. 09, 2026 (GLOBE NEWSWIRE) -- Occidental (NYSE: OXY) today announced it signed long-term agreements with two companies to secure CO₂ captured from third-party natural gas processing facilities in the Delaware Basin for use in Occidental’s enhanced oil recovery (EOR) operations in the Permian Basin. The two project developers will fund and build the infrastructure to capture, transport and deliver the CO₂ to Occidental.
The separate agreements cover two projects in the Delaware Basin that are expected to collectively capture and transport approximately 2 million metric tons of CO₂ annually from existing and new natural gas processing plants. The projects have the potential to expand up to 4 million metric tons per year combined. The projects are subject to final investment decisions, and initial shipments to Occidental are anticipated in 2029.
Get started
Create a free account to read the full story.