Veolia and Devon Join Up Again

Veolia Environnement (VE - Snapshot Report) announced that its unit Veolia Water Solutions & Technologies has been selected by Devon Energy Corporation (DVN - Analyst Report) to supply an induced gas flotation (“IGF”) system for the latter's Jackfish 3 project. The Jackfish project utilizes the Steam Assisted Gravity Drainage (“SAGD”) technique to extract bitumen.

The Veolia unit will provide a Whittier Filtration AutoFlot IGF system, with a capacity to treat 932 m3/hour of oil laden produced water. The pressurized system will assist in removing oil from the produced water of the Jackfish project and at the same time prevent H2S gas and other potentially hazardous vapors to escape in the environment. Veolia is expected to deliver the system in September 2011.

Since Veolia had already satisfactorily supplied an IGF system for Devon's Jackfish Project 2, the current deal for yet another IGD comes as no great surprise.

Veolia Water Solutions & Technologies is a subsidiary of Veolia Water, which in turn is a business wing of Veolia Environnement. The expertise of this particular Veolia unit to treat water has allowed them to earn consistent contracts worldwide.

Earlier this month, Veolia Water signed an agreement with CONSOL Energy (CNX - Analyst Report) to design, build and operate a new facility to treat and recycle mine water generated from CONSOL's two mines. Per the agreement, Veolia Water will have a 10-year operating partnership with CONSOL, plus an additional 5-year option to operate the facility.

In a separate development, Veolia Water teamed up with AREVA to treat the highly-radioactive water of the Fukushima Daiichi nuclear plant in Japan. Till date the companies have been able to treat 15% of the accumulated volumes which is testament to their expertise in treating polluted water.

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.

Based in Oklahoma City, Oklahoma, Devon Energy Corporation is an independent natural gas and oil exploration and production company in the United States and Canada.

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