By OGJ editors
HOUSTON, July 8 -- Ivanhoe Energy Inc. , Vancouver, BC, has contracted with Boston-based Ensyn Petroleum International to have Ensyn test its Rapid Thermal Processing technology, which upgrades the quality of heavy oil by producing lighter crude oil.
Under terms of the contract, Ivanhoe will test heavy crude oil from its South Midway field at Bakersfield, Calif., in a 250 b/d demonstration plant Ensyn is constructing in California's San Joaquin Valley. The test should be completed by yearend, Ivanhoe said. If it is successful, Ivanhoe will have exclusive rights to apply the technology in two countries outside the US where heavy oil fields have been proven but are underdeveloped.
"There are billions of barrels of proven heavy oil worldwide that have not been developed. This process could demonstrate that heavy oil can be developed and produced more economically by reducing operating costs and by upgrading the value of the crude oil sold," said Ivanhoe Chairman David Martin.
Under Ensyn's proprietary process, the heaviest material from the oil stream is consumed, providing an energy source to generate steam for the enhanced production of heavy oils. This would lower operating costs by reducing the need to purchase natural gas for steam generation. In addition, higher quality crude oil could be sold at higher prices and would flow more easily through pipelines.
Ensyn's technology already has been applied successfully to continuous wood-biomass processing, with several commercial plants in operation (OGJ Online, Jan. 9, 2002). The process and plant construction rely on conventional and readily available components. Ensyn has a pilot facility in Canada and has completed over 90 test runs on heavy oil (OGJ Online, Mar. 21, 2002).
Should the test results in California confirm the commerciality of this process, the technology could be implemented fairly rapidly in California and elsewhere in the world, Ensyn said.