Arroyo Grande oilfields to use reclaimed water

April 13, 2011

Owners of an Arroyo Grande oilfield have signed a deal with Veolia Environmental to design, build and operate a 45,000-barrel per day reclaimed water facility under a 12-year agreement. [AmericanBankingNews]

In 2009, Plains Exploration & Production Company (PXP) drilled seven wells in Arroyo Grande. The oil fields have heavier oil with well depths averaging 1,700 feet that require continuous steam injection to operate.

The facility is slated to provide PXP the water it needs for oil production.

“This project uses world-class technology that treats produced water to generate high-quality water,” said Kirk Schwab, general manager of the Veolia Water Solutions & Technologies told American Banking News. “As a result, our partnership is creating societal and environmental benefits that we can all be proud of.

“This approach demonstrates a shared commitment to responsible development of resources.”