FluidOil acquires Ivanhoe Energy’s intellectual property

Oil upgrading technology solutions provider FluidOil has completed the acquisition of Canada-based Ivanhoe Energy’s intellectual property and its US subsidiary.

FluidOil’s acquisition includes Ivanhoe’s licence to its HTL oil upgrading technology, which serves as an alternative solution to the conventional approach to transportation of heavy crude oil.

Following the acquisition, Ivanhoe’s HTL technology will be incorporated into FluidOil’s existing Viscositor technology in order to create Viscositor HTL, a new oil upgrading solution.

Viscositor will provide a solution to enable on-site upgrading of heavy oil to around 30° API light oil, while producing less than 0.3% Olefins.

This will enable oil producers to eliminate the need to purchase or transport site diluents and increase the value at the wellhead of each barrel of oil produced.

FluidOil CEO Charles Parker 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."

Along with its Canadian joint venture partner, Red Giant Energy Services, FluidOil proposes to test the combined Viscositor HTL technology at Ivanhoe’s feedstock test facility in San Antonio, Texas, US.

The data collected from these tests, along with those being conducted on FluidOil’s plant in London will be used to finalise the engineering of a commercial demonstration plant which will have a capacity of 300bpd.

The plant is expected to be commissioned in Alberta at the end of 2016.

In June 2015, Ivanhoe was declared bankrupt after it could not reach a restructuring proposal under the Bankruptcy and Insolvency Act.