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Statoil to Test CO2-Assisted Stimulation in the Bakken

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Statoil has awarded a major carbon dioxide (CO₂) supply and service agreement to Denver-based Ferus LP.

The liquid CO₂ will be used in a test well to evaluate the potential production uplift and partially replace water in a large multi-stage hydraulic fracturing operation in a horizontal oil well. In addition to CO₂ supply, Ferus, specialists in the off-road movement of industrial gases, will provide transportation, logistics, storage, and on-site supervision. The service agreement also includes the deployment of a membrane technology that separates the CO₂ from the produced gas to reduce the extent of flaring.

This CO₂ stimulation test is one of several projects under Powering Collaboration – the joint technology program between Statoil and GE aimed at accelerating the development of sustainable energy solutions. The use of CO₂ as an energized fluid is common in the Western Canadian Sedimentary Basin but this will be the first major application of liquid CO₂ to displace slickwater during the hydraulic fracturing process in the Bakken.

Murray Reynolds, P.Eng., Director of Technical Services at Ferus, said: "Ferus is pleased to partner with a progressive and environmentally conscious company like Statoil to introduce CO₂-based energized fracturing into the Bakken. This single job will conserve thousands of barrels of fresh water and is expected to enhance well productivity," added Lionel Ribeiro, PhD, Researcher Drilling and Well Technology with Statoil Gulf Services.

In collaboration with the University of Texas at Austin (Joint Industry Project on hydraulic fracturing), Ferus and Statoil have demonstrated through numerous technical studies on North American reservoirs the potential for CO₂ to enhance well productivity, while significantly reducing fresh water usage.

The proposed CO₂-assisted stimulation design has been further tailored for the Bakken formation to optimize the production uplift.

This contract represents the second major partnership between Statoil and the Ferus Group of Companies in the Bakken. In September, 2014, Statoil, GE and Ferus Natural Gas Fuels LP (Ferus NGF) announced the commercial expansion of a pilot project to capture flare gas and use it to power Statoil's oil and gas operations in North Dakota. The Ferus NGF-GE joint venture solution is helping Statoil and other E&P companies greatly reduce flaring and monetize previously wasted gas by capturing it and using it to economically fuel their own operations.