Ivanhoe Energy Inc., Bakersfield, Calif., successfully completed in March performance testing of Ensyn Petroleum International Ltd.’s oil commercial demonstration facility in Belridge heavy oil field near Bakersfield. The facility converts heavy oil into light oil.
“Successful completion of this testing paves the way for the commercial deployment 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,” said Leon Daniel, Ivanhoe Energy’s president and CEO.
The results satisfied Ivanhoe’s technical performance requirements and criteria for completion of its acquisition of Ensyn Group Inc. That transaction is expected to close early in the second quarter, following regulatory approvals.
The facility demonstrated an overall processing capacity of about 1,000 b/d of raw heavy oil by operating Ensyn’s trademarked thermal processing “hot section” at its capacity of 300 b/d, officials said.
Ivanhoe Energy and Ensyn Petroleum let a contract to Colt Engineering Corp., Calgary, to develop designs for fully commercial modules of 10,000-15,000 b/d of raw, heavy crude input. The modular design allows for economic small-field development as well as efficient, large-scale field development projects using multiple modules as production capacity builds up.
This California facility, the first of its kind in the world, will continue to be used in the near term to test other local heavy oils and a range of crudes from potential projects around the world, said company officials.
The technology produces a light oil with viscosity easily accommodating pipeline transport.
Company officials said a facility based on the technology can yield large amounts of surplus energy as an on-site source for production of steam or power used in heavy-oil recovery. In addition, the process can be installed in scalable, modular facilities.