An enhanced oil recovery project
Our Weyburn operation is located in southern Saskatchewan and is one of the most abundant conventional oilfields in Canada. Cenovus has been operating the Weyburn facility on behalf of our 24 partners. On November 13, 2017, Cenovus announced an agreement to sell our 62 percent working interest in the Weyburn operation for cash proceeds of $940 million. The sale is expected to close in the fourth quarter of 2017.
Weyburn has been in operation since 1954, and since the implementation of our CO2 flood for enhanced oil recovery (EOR) in 2000 the project has become recognized as the world’s largest geological carbon dioxide storage project. After being injected into the reservoir, CO2 acts like a solvent and helps push more oil towards the producing wells.
In February of 2017, our Weyburn project reached an important milestone achieving the cumulative safe injection of approximately 30 million tonnes of CO2 underground since we first started using CO2 flood technology. This effective storage in greenhouse gas emissions is equal to taking more than six million cars off the road for an entire year.