Enriching injection water with CO2 has demonstrated promising results as a method for improving the oil recovery and securely storing CO2 in oil reservoirs. However, mutual interactions taking place between carbonated water and reservoir oil at elevated reservoir conditions are not fully understood. Herein, we present the results of a thorough and direct investigation of the interactions between live-oil/CO2/aqueous-phase leading to additional oil recovery and enhanced CO2 storage in pore-scale and core-scale. CO2 transfer from carbonated water to live oils can trigger liberation of light components in form of a new gaseous phase. This unique phenomenon would bring about higher degrees of oil swelling, and it can also create a three phase flow regime, which leads to effective reduction of residual oil saturation. The observations confirm that the performance of carbonated water injection (CWI) should be investigated under reservoir conditions using multi-components live oil and reservoir cores. From the core displacement tests, it was observed that secondary CWI could recover a significant amount of additional oil, which was 26% compared to conventional seawater injection. When CO2 content of injected CW (carbonated water) was halved, the oil recovery dropped by 1/3 Using live oils, it was found out that CO2 would be trapped in the new phase, which brings about an enhanced CO2 trapping mechanism. Under realistic reservoir conditions where complex mass transfer of CO2 from aqueous phase to oil and gas phases takes place, an "in-situ WAG-type" three-phase flow is generated with more effective sweep efficiency and pore-scale advantages.