FluidOil completes acquisition of Ivanhoe Energy
FluidOil Limited, a provider of oil upgrading technology solutions, has completed the acquisition of the intellectual property of Vancouver, Canada-based Ivanhoe Energy Inc. ("Ivanhoe as well as the acquistion of its Texas, USA-based subsidiary Ivanhoe Energy Holdings Inc.
Ivanhoe Energy was recognised as an international leader in heavy oil development and production with core operations in Canada, Ecuador, China and Mongolia. The acquisition includes Ivanhoe Energy's irrevocable licence to its HTL heavy oil upgrading technology, which provides an alternative to the traditional approach to the transportation of heavy crude oil.
The acquisition consolidates FluidOil's position as a global leader in onsite oil upgrading technology. Ivanhoe Energy's HTL technology will be incorporated into FluidOil's existing Viscositor technology to create a fully patented, enhanced, heavy oil upgrading solution, to be called Viscositor HTL.
Viscositor HTL will provide a commercially attractive solution to enable on-site upgrading of heavy oil to circa. 30 degree API light oil whilst producing less than 0.3% Olefins. This enables oil producers to increase the value at the wellhead of each barrel of oil produced by eliminating the need to purchase or transport site diluents, supplying higher grade oil direct to refineries and reducing energy usage. The technology will also be used to process waste oils.
Charles Parker, FluidOil CEO, said: "We are extremely excited about this acquisition which fits well with our strategy to provide market-leading heavy oil upgrading solutions. By installing Viscositor HTL technology at the production site or midstream in the supply chain, countries and companies being squeezed by declining rates of benchmark crudes will realise significant improvements in the feasibility and economics of producing and refining heavier crude oils."
FluidOil, with its Canadian joint venture partner, Red Giant Energy Services ("Red Giant"), intends to test the combined Viscositor HTL technology at Ivanhoe's Feedstock Test Facility in San Antonio, Texas, USA, secured with Red Giant as part of the acquisition. The data from these tests, together with data from tests being conducted on FluidOil's pilot plant at its development centre in London, UK, will be used to finalise the engineering of a 300 barrel per day commercial demonstration plant to be commissioned in Alberta at the end of 2016.