Hobbs

The Hobbs Field CO₂-enhanced oil recovery project, operated by Occidental Permian Ltd. (OPL), comprises the North Hobbs Grayburg San Andres Unit (NHU) and the South Hobbs Project Area (SHU) in Lea County, New Mexico, within the Permian Basin. Both units produce from the same structural trap and reservoir system, primarily the Grayburg and San Andres carbonate formations, and are managed under a unified monitoring, reporting, and verification (MRV) framework. The field was historically developed through primary production followed by extensive waterflooding prior to conversion to miscible CO₂ flooding, which began around 2003. Current operations inject a combination of purchased (“fresh”) CO₂ from Occidental affiliates or third parties and recycled CO₂ recovered from field recycle and compression facilities. The primary objective is enhanced oil recovery, with long-term geologic storage of retained CO₂ as a subsidiary purpose under EPA Subpart RR requirements. Reservoir modeling forecasts CO₂ injection, production, and storage performance through approximately 2100, indicating significant storage capacity within the carbonate reservoir system. Planned operations include continued pattern-based CO₂ injection using Class II wells, ongoing recycling of produced CO₂, and monitoring programs designed to verify containment and quantify stored volumes during the defined “Specified Period.”