Carbon dioxide injection in oil reservoirs is one of the main improved oil recovery methods; in addition, it is a useful method for the reduction of carbon dioxide in the atmosphere. Carbon dioxide generally exists in supercritical state in hydrocarbon reservoirs that are usually explored, but the temperature of some shallow reservoirs and reservoirs underlying permafrost is below the critical temperature of carbon dioxide which provides a unique opportunity for liquid carbon dioxide storage and the application of a novel enhanced oil recovery method. During this work, a compositional simulation study is conducted by a commercial compositional reservoir simulator to evaluate performance of the liquid carbon dioxide injection in a low temperature heterogeneous reservoir. The results show the oil recovery factor after 24 years of production, during liquid carbon dioxide injection is 14.79, which is 3.90 and 8.59 higher than the water flooding strategy and natural depletion respectively. It also finds that the huge amount of CO2 is stored in the reservoir. This study further shows that the oil recovery increases by increasing the injection pressure and the injection of the liquid carbon dioxide in bottom of the reservoir. Copyright 2013, Society of Petroleum Engineers.