FluidOil and Steam Oil enters an agreement to explore the potential of FluidOil’s VHTL
FluidOil announced that it has entered into a cooperation agreement with Steam Oil Production Company (“Steam Oil”) to explore the potential of integrating FluidOil’s Viscositor Heavy-to-Light (“VHTL”) oil upgrading technology into an offshore steam flooding project.
As part of the cooperation agreement, FluidOil and Steam Oil intend to explore this potential and to determine the plant configuration which maximises process synergies, delivers the highest value of product from the Western Platform reservoirs, and minimises fuel costs.
Steam Oil plans to construct a steam flood demonstration project on part of the Pilot field. The subsequent steam flood development of the remainder of the Pilot field, and the other Western Platform heavy oil fields, has the potential to produce in excess of 300 mmbbls. Further exploration success could increase the potential recoverable resource base from the Western Platform to over 500 mmbbls.
FluidOil’s VHTL technology generates significant volumes of high pressure steam, and its integration into the process design for the follow-on Western Platform Steam Flood project could reduce separation, steam generation and associated fuel requirements.
Steam Oil CEO, Steve Brown said that they are very taken with the obvious synergies of integrating FluidOil’s upgrading technology into a steam flooding project. Steam flooding is the most effective recovery mechanism for heavy oil and we expect to see recovery factors of between 50% and 80% when we steam flood these reservoirs. To do that they will need a lot of steam and the steam produced as a by-product of FluidOil’s upgrading process will significantly reduce our fuel costs. In addition, the VHTL process does not demand a stringent water-in-oil content specification so we can simplify our process requirements. Finally, the VHTL process consumes heavy metals and naphthenic acid and other contaminants which refiners do not like and which would otherwise affect the value of their crude.
FluidOil CEO, Charles Parker said that they are pleased to be playing a part in what could potentially be the first project of its kind. At a time when the industry is looking to maximise value, they believe that their patented technology could help play an important role in enabling offshore heavy oil producers realise greater returns from their output. Their proposition was developed to help reduce the financial and environmental costs for heavy oil producers around the world. They are thrilled to be teaming up with Steam Oil to deploy an integrated thermal production and upgrading proposition for UK heavy oil.
Image Source: FluidOil Limited