Oil recovery agreement

Shell and Statoil have signed an agreement to work towards developing the world’s largest project using carbon dioxide for enhanced oil recovery offshore.


Shell and Statoil have signed an agreement to work towards developing the world’s largest project using carbon dioxide for enhanced oil recovery (EOR) offshore. The concept involves capturing CO2 from power generation and using it to enhance oil recovery, resulting in increased energy production with lower CO2 impact.



The project consists of a gas-fired power plant and methanol production facility at Tjeldbergodden in Mid-Norway, providing CO2 to the Draugen and Heidrun offshore oil and gas fields. Power from the plant will also be provided to the offshore fields, enabling near zero CO2 and nitrogen oxide (Nox) emissions from these installations.



The various elements of the project will be phased in during the period 2010-2012. The project is financed through Norwegian government funding.



The venture forms part of Norway’s response to international and national climate targets. It aims to increase energy supplies and address related CO2 emissions. The project could potentially store approximately 2-2.5 million tonnes of CO2 annually in the two fields.