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Canada

Our activity in our Canadian region is concentrated in the provinces of Alberta, British Columbia, Saskatchewan, and to a minor degree the Northwest Territories.

Enhanced oil recovery and carbon capture and storage

Enhanced oil recoveryApache Canada is a world leader in Enhanced Oil Recovery (EOR) and Carbon Capture and Storage (CCS), receiving international attention for our projects in Zama City, Alberta and Midale, Saskatchewan.  One of Apache’s priorities is identifying voluntary, cost-effective emission reduction programs that are both economic to implement and result in the significant reduction of greenhouse gas (GHG) emissions.

Midale Unit CO2 EOR Project

The potential for a full-scale CO2 EOR project provided an incentive for Apache’s acquisition of the Midale Unit from Shell in 1999. Under Shell’s guidance, the field (discovered in 1953) underwent a CO2 pilot project in the mid-1980s and a demonstration project in the 1990s.  Upon acquiring the Unit, Apache maximized the field waterflood potential, and then proceeded to implement a full-scale EOR project.

The decision has paid off. The Midale CO2 EOR Project is now the second largest of its kind in Canada, and represents a $120 million investment for Apache. The project uses CO2 transported by pipeline by Dakota Gasification Company from the SynFuels Gasification Plant in Beulah, North Dakota to the Weyburn-Midale area. Over the next 20 years, Apache Canada  plans on injecting approximately 25 million cubic feet per day (MMcfd), or 1,300 tonnes per day, of CO2 into the Midale field, recovering an additional 45 to 60 million barrels of oil. Upon completion, the CO2 can be sequestered underground, stopping 8.75 million tonnes of CO2 from entering the atmosphere – the equivalent of removing two million cars from the road for a year.

Apache is also participating in the International Energy Agency Greenhouse Gas (IEA GHG) Weyburn-Midale CO2 Monitoring and Storage Project, which has been recognized by the IEA GHG R&D Programme for technical excellence, and the Carbon Sequestration Leadership Form (CSLF) for ensuring sound policy and regulatory development.  The Monitoring and Storage Project is helping scientists develop a comprehensive understanding of CO2 geological storage and building the most scrutinized data set in the world.

Zama CO2 EOR Pilot Project

Using knowledge garnered from the Midale Unit, Apache implemented an Acid Gas (CO2 /H2S) EOR Pilot Project in Zama, Alberta.  The Zama Keg River basin is a collection of over 800 pinnacle reefs, most of which have been depleted of oil through primary and secondary recovery methods. In 2004, Apache selected one depleted pool that had been used for acid gas (CO2 and H2S) disposal, reversed the flow from a well in the pool, and began producing oil. 

Under the Alberta Energy CO2 Projects Royalty Credit Program announced in 2004, Apache was awarded $5-million in royalty credits from Alberta Energy to support the implementation of a pilot program to test the concept of a vertical, top-down acid gas EOR flood, the first of its kind in the world. In addition, Natural Resources Canada also awarded Apache $3.1 million in grants. Apache implemented the pilot utilizing acid gas that had been previously sent to a sulphur plant where the CO2 component was vented to atmosphere, and the H2S was converted into elemental sulphur. Apache shut down the sulphur plant and utilized all the CO2 and H2S for EOR purposes. The first pool commenced injection in December 2004 and continues to produce oil today at a rate of over 100 barrels per day.  Apache has expanded the pilot to include four more pools, and continues to combine all acid gas produced at the Zama Gas Plant with the acid gas recovered from EOR operations and injected into these pools.

The Zama CO2 EOR Pilot Project has received international attention. The Energy and Environmental Research Center (EERC) at the University Of North Dakota operates the Plains CO2 Reduction Partnership (PCOR), one of seven partnerships established by the United States Department of Energy to develop CO2 emission reduction technologies. The EERC conducts research into measurement, monitoring and verification protocols to provide assurance that CO2 stored in the reservoir does indeed stay sequestered. The Zama CO2 Project was nominated by Canada and the United States, and supported by the Province of Alberta, for recognition by the Carbon Sequestration Leadership Forum (CSLF) as one of 20 unique projects worldwide.   The Project was accepted in March 2007.

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