This New Demonstration Builds on Data Collected in Previously Successful Processing Runs for Conoco Canada, Lukoil Komi, CNPC division CPECC Dalian and other noteworthy clients
NEW YORK, NY / ACCESSWIRE / April 9, 2018 / Genoil Inc, (OTCQB: GNOLF) announces that high sulfur crude oil samples from Pemex (the Mexican State-owned petroleum company) have arrived at Genoil's engineering headquarters in Russia and that the demonstration will be conducted soon in the presence of Pemex engineers at our state-of-the-art multipurpose demonstration facility hosted by the UFA Scientific Research Institute of Petroleum Refining and Petrochemistry located in Bashkortostan. Technical viability has already been proven and the purpose of this commercial demonstration run will validate to Pemex the strength of the economic model created by the Genoil Hydroconversion Process from upgrading Pemex's heavy high sulfur crude oil into valuable light sweet, low sulfur crude oil. The feedstock demonstration will also support the engineering and design of a large-scale commercial GHU facility currently under evaluation by Genoil, to be constructed at the commercial crude center - Palomas in Veracruz Mexico, and additional regions of Mexico as well as other target project locations around the world. Genoil's engineering team is being led by Raushan Telyashev, formerly General Director of Lukoil and in charge of the all Lukoil design and R&D institutes for downstream at the second largest oil company in Russia. In 2012, Raushan was responsible to review all Lukoil Komi upgrading solution strategies, had met with Genoil and had been advising the lead team that had previously endorsed the successful demonstration of Genoil's GHU process on Lukoil Komi crude oil. Future planned demonstration runs shall create significant hard data that support our industry-leading EPC partners as we work toward basic engineering designs for commercial implementation. Correlations with previous tests shall confirm, liquid yield output, reduction of sulfur, acidity, metals and CAPEX costs.
At Genoil's request, the largest Chinese Policy bank issued a USD $5 billion letter of intent to Saudi Arabian Oil Company for a potential project in Saudi Arabia. This letter of intent was recently placed in the hand of Saudi Arabian Crown Prince Mohammed bin Salman by the Saudi Ambassador and the project is in advanced discussions. This same bank has expressed interest in financing Commercial Genoil upgrading facilities needed in Mexico and is willing to finance a million barrels per day of total capacity. Pemex's crude production has become "heavier" in recent decades as recent oil discoveries have been of the heavy oil variety and it is currently estimated that heavy crude represents approximately 75% of Pemex's crude production. Pemex has been actively seeking solutions and partners to participate in desulfurizing this heavy crude. The Secretariat of Energy of Mexico anticipates it will need to convert up to one million barrels/day of heavy crude.
Previously, Pemex said it was assessing the possibility of importing light crude oil to increase the efficiency of its refineries, however, issues with regard to compatibility have made this effort difficult. Genoil's Hydroconversion Upgrader (GHU) with its advanced upgrading and desulfurization technology, which converts heavy or sour crude oil into much more valuable light low sulfur oil for a very low cost is the ideal solution for Pemex's heavy oil.
Raushan Telyashev Genoil Vice President and former General Director of Lukoil said, "After the successful multiple demonstration process runs, and the addition of significant improvements we have since made to the GHU technology in the last 12 months; Pemex's engineers believe that hydroconversion can meet their needs for upgrading Mexican heavy and sour crude and that the purpose of the GHU demonstration is only to show the performance of the GHU hydroconversion process."
Bruce Abbott, President & C.O.O. of Genoil, commented, "Shipping this Pemex crude to UFA is a game-changing event for Genoil. We expect this test to take less than 30 days and result in a formal partnership between Pemex. Genoil has a goal of implementing one million barrels per day of total GHU Upgrading Capacity." Mr. Abbott continued, "People are the most important asset this company has, and we have a fantastic team in Mexico, Russia and around the world, we also have the best engineers and corporate partners in the industry." "Genoil has partnerships with two incredible institutes, UFA which we talked about in this release and also the OJS VNIIUS institute based in Kazan. VNIIUS works with companies like Chevron partnered with Lukoil, Rosneft & Gazprom and supports over one hundred different companies from around the globe." Abbott continues, "We are very happy to have two of the leading research and development institutes in the world supporting our engineering team to improve on the most advanced hydroconversion process in the world."
About Genoil Inc.:
Genoil has developed a proprietary, state of the art advanced hydroconversion process technology, the Hydroconversion Upgrader (GHU), which converts heavy crude oils and refinery bottoms into clean crude which yields a higher light end product slate which produces clean-burning fuels for transportation. The company is deeply focused on the downstream transportation refining industries especially shipping. Hydroconversion is a well known and proven desulfurization process, proven on feedstocks ranging from crude oil to Naptha.
About The Genoil Hydroconversion Upgrader:
The Genoil Hydroconversion Upgrader (GHU®), is an advanced upgrading and desulfurization technology, which converts heavy or sour crude oil into much more valuable light low sulphur oil for a very low cost. The GHU achieves 96% pitch conversion and 95% desulfurization with an operating cost of up to 75% less than the competition. For Conoco Canada Ltd, Genoil converted their bitumen of 6-8.5 API and converted it to 24.5 API. We also removed 92% of the sulphur reducing the amount from 5.14 % to below 0.24%. These results were taken by Conoco Canada Ltd, who had them analysed by Core Laboratories, one of the largest service providers of core and fluid analysis in the petroleum industry.
About The UFA Scientific Research Institute of Petroleum Refining and Petrochemistry:
The State Unitary Enterprise "Institute of Petroleum Refining and Petrochemistry of Republic of Bashkortostan " is located in the Republic of Bashkortostan, Russian Federation. The state of the art Institute has more than 60-years' experience in the field of hydrocarbon processing technologies and well recognized by the Industry. UFA is the only 100% governmentally owned institute specializing in refining and heavy residue processing.
About: Beijing Petrochemical Engineering Company:
BPEC was founded in 1979 and is a first-class engineering company based in Beijing and its parent company is the fourth largest Chinese oil company, Shaanxi Yanchang Petroleum Group Corp Ltd. BPEC currently has about 1200 employees and holds a class A qualification of engineering consulting and engineering design. The company has been mainly engaged in engineering consulting, engineering design, EPC, engineering technology development and other related business in the fields of refining, petrochemical, coal-chemical, natural-gas-chemical, oil and gas fields, storage and transportation, etc.
About: Shaanxi Yanchang Petroleum Group Corp. Ltd:
Formerly "Yanchang Oil Plant" founded by the Qing regime in Yan'an in 1905, Yanchang Petroleum is China's only century-old oil enterprise and the driller of the first oil well on the Chinese continent. Shaanxi Province where Yanchang Petroleum is located is an emerging key oil & gas province in China, with rapid growth of 5 million tons oil & gas equivalent on average every year since the beginning of the "twelfth five-year" period. In 2012, Shaanxi province became China's largest oil & gas-producing province with oil & gas equivalent of over 60 million tons. They are also one of the largest producers of coal in China with 18 billion tons of coal reserves, and 300,000 bpd of oil production.
About: OJS "VNIIUS" Institute in Kazan:
VNIIUS is one of the leading research institutes in Russia in the field of production and consumption of hydrocarbon feed. With 50-years of experience in practical work allows us to render assistance to oil and gas producing companies, to oil and gas processing companies and also to companies of deep oil processing and sulfur recovery. VNIIUS has cooperated with Chevron and over one hundred different companies from around the world.
For more information please contact:
David LifschultzTel: 212 688 8868Email: [email protected]
SOURCE: Genoil Inc.