Abstract: A system for reducing lifting costs in a producing oil well is disclosed. The system employs a casing string set through a production zone having upper producing perforations and lower injection perforations. Dual electric submersible pumps are run in on a tubing string to the production zone and a production packer is set between the producing and injection perforations. Produced fluid is allowed to separate in the casing--production tubing annulus and the first electric submersible pump pumps the separated oil to the surface via the production tubing. The reported water is pumped to the injection perforations below the packer by the second electric submersible pump.