New Delhi: Indian Oil Corporation Limited (IOCL), India's flagship energy major and Oil India Limited (OIL), the nation's premier exploration and production company, have signed a memorandum of understanding (MoU) for collaborating on a unique CO2-Enhanced Oil Recovery (EOR) project in Assam on Friday. IOCL's Chairman Sanjiv Singh executed the agreement alongside OIL's CMD SC Mishra in the presence of IOCL's Director (R&D) Dr SSV Ramakumar, IOCL's Director (Pipelines) Akshay Kumar Singh, IOCL's Director (Refineries) SM Vaidya, OIL's Director (Operations) PK Sharma and senior officials from IOCL and OIL.

The two mega corporates intend to collaborate in developing carbon capture, utilisation and storage (CCUS) as an effective emissions mitigation tool to combat climate change. Injecting carbon dioxide (CO2) into oil reservoirs for effecting Enhanced Oil Recovery (EOR) offers a potentially attractive way to spur greater CCUS action to support climate change-related carbon storage objectives as well as improve oil-well productivity.

"Enhanced oil production from depleting wells using CO2 captured from refineries is a pioneering initiative in India. Expeditious implementation should be ensured to quickly exploit & scale up this initiative" : IOCL's Chairman

It is proposed that CO2 captured from the flue-gas stacks of hydrogen generation unit and gas turbine power plant at Digboi refinery will be transferred to the Nahorkatiya and Dikom oil fields of OIL in Assam, located approximately 50-60 km from Digboi. Speaking on the occasion, Singh said, "Enhanced oil production from depleting wells using CO2 captured from refineries is a pioneering initiative in India.

Expeditious implementation should be ensured to quickly exploit and scale-up this initiative." Addressing the dignitaries, Vaidya asserted that, "Carbon capture for EOR extends the productivity of mature oil fields and is in line with our Prime Minister's clarion call for reducing crude oil imports. It is also a step in the direction of mitigating 'climate emergency' that our planet faces."

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)