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Veolia to Recycle Water for PXP

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By: Zacks Equity Research
April 14, 2011 | Comment(s): 0
Recommended this article (6)
VE | PXP | YORW | CTWS

Veolia Water, the water division of Veolia Environnement S.A. (VE - Snapshot Report), has been selected to design, build and operate a 45,000 barrel- per-day (Bbls/d) produced water reclamation facility in California for Plains Exploration & Production Company (PXP - Analyst Report). Located in Plains’ Arroyo Grande Oilfield in San Luis Obispo County, California, the facility will be supervised by Veolia Water under a 12-year performance agreement.

Per the agreement, Veolia Water will provide operations and maintenance services and performance guarantees on a fixed-fee basis to ensure design performance and high-quality recycled water. Veolia plans to install Veolia Water’s OPUS II technology to supply high-quality water in the treatment system.

Veolia said the treatment process will produce water that meets or exceeds state and federal permit requirements. This treated water at the Arroyo Grande facility will provide 25,000 Bbls/d for use as Once Through Steam Generation (OTSG) make-up. It will also provide about 20,000 Bbls/d for surface water discharge and dewatering the Arroyo Grande reservoir, which will result in reduction of formation pressure enabling increased crude oil production at the site.

Veolia Water’s OPUS II technology is a world-class technology that processes water for better quality. This technology utilizes Veolia Water’s CeraMem ceramic membranes as pre-treatment prior to ion exchange and reverse osmosis. The company had demonstrated the OPUS II process on the facility’s site in a pilot-scale study for a period of four months, before the agreement was reached.

Based in France, Veolia Environnement is a provider of environmental management services to its worldwide consumers. It operates through four segments, which are Water, Environmental Services, Energy Services, and Transportation. Veolia’s peers are Connecticut Water Service Inc. (CTWS - Snapshot Report) and York Water Co. (YORW - Snapshot Report).

Veolia Water, a unit of Veolia Environnement, is the world leader in water and wastewater services and technological solutions. Veolia Water is uniquely able to provide cutting-edge technologies for oil and gas customers and back them with a full operational performance guarantee.

Read the full analyst report on VE

Read the full analyst report on PXP

Read the full analyst report on YORW

Read the full analyst report on CTWS

 

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