Bruce Abbott
COO
GenOIL
/
View from the Top

Expertise in Industry-wide Improvement

Tue, 01/21/2020 - 19:46

Q: What is the greatest challenge PEMEX faces and how can GenOIL help?

A: A great deal of crude oil in Mexico is heavy crude, which is high in sulfur a. Heavy crude sells for less than light crude. Next year the International Maritime Organization will pass legislation to ban the burning of high sulfur fuel oil, which has been powering vessels for generations. This will be the greatest shift in the shipping industry since it switched from coal to oil. The Tula Refinery has anticipated these changes and has started the construction of a coker unit to eliminate the fuel oil and make lighter products. This legislation is not good for PEMEX’s bottom line. The GenOIL process can solve this problem for PEMEX by upgrading the quality of the feedstock that these refineries depend on. Fuel oil production is one of the biggest challenges facing PEMEX today.

Q: What have been the results of the GenOIL Hydroconversion Upgrader (GHU) product application on PEMEX sour crude?

A: GenOIL recently conducted a PEMEX upgrading demonstration at the UFA Petroleum Scientific Research Institute in Bashkortostan. The demonstration proved that PEMEX crude can be made much more valuable through upgrading. We were able to upgrade the product from 10 API to 30 API and show that a large-scale project like this would dramatically increase PEMEX’s profitability. GenOIL is in discussions to develop more production in Mexico and through our partnerships we can provide a total solution to PEMEX, from upstream oil field services to upgrading. GenOIL wants to be involved in the field development and expansion from the beginning. Our GHU technology can be used in any refinery in the world and every engineer at PEMEX is fully familiar with the hydroconversion process — so it should be an easy sell.