Praxair awarded ExxonMobil contract for enhanced oil recovery project

Praxair, Inc. (PX) has signed a contract with ExxonMobil (XOM)to build, own and operate an air separation unit (ASU) to supply additional nitrogen for enhanced oil recovery (EOR) operations at ExxonMobil’s Hawkins, Texas gas processing plant site.

Under the new contract, Praxair will install a new production facility to meet ExxonMobil’s requirements for nitrogen. Operations from the new supply network are scheduled for start-up in the second half of 2011. Praxair will produce 85 million cubic feet per day of high-pressure nitrogen and additional quantities of liquid argon.

“We are pleased to be working with ExxonMobil on this exciting EOR project” said John Panikar, vice president, South Region, North American Industrial Gases.

ExxonMobil currently uses Praxair's nitrogen gas to increase the amount of oil recovered from its Hawkins plant. ExxonMobil will utilize additional nitrogen to help them recover more oil and natural gas reserves.



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