Successful tests for oil conversion

A process developed by Californian firm Ivanhoe Energy could lead to a new source of light oil, a versatile feedstock for the petrochemicals industry.

The process turns heavy oil, mainly used for lubricating oil grades, into a lighter product.

The company has now announced the first successful test of the technology, and is to develop the system for use at heavy oil fields in association with Ensyn Petroleum, at whose commercial demonstration facility the process was tested, and Colt Engineering of Calgary, Canada.

Heavy oil is a viscous material, difficult or impossible to transport through pipelines and to to process; as a result, its value is much less than light crude, which is the preferred feedstock for refineries and crackers.

The technology developed by Ivanhoe and Ensyn, known as Rapid Thermal Processing (RTP), has three advantages, the companies claim: it turns the oil into a far more valuable material, with the approximate value of ‘natural’ light crude; it allows the oil to be transported; and it generates surplus heat, which can be used for production of steam and/or power.

Ivanhoe, Ensyn and Colt are now to develop designs for commercial RTP modules, which would process some 10000-15000 barrels/day of heavy crude. ‘The modular design allows for economic small-field development, as well as efficient, large-scale field development projects utilising multiple modules as production capacity builds up,’ says Ivanhoe.

The company also plans to use the technology for leverage in future oilfield acquisitions, says president and chief executive Leon Daniel.

‘The successful completion of this testing paves the way for the commercial development of this technology in heavy oil fields around the world, and will provide the platform for Ivanhoe Energy’s acquisition and development of equity interests in heavy oil reserves and production worldwide,’ he comments.