Ikelic - Alliance Digital Repository

STATUS OF OIL SANDS PROJECTS (Underline denotes changes since June 1994)
COMMERCIAL PROJECTS (Continued)
The refinery/crude unit has been at running well over 50,000 barrels per day of heavy/medium crude. From that,
32,000 barrels per day of heavy resid bottoms are sent to the Atmospheric Residual Desulfurization unit which per
(ARDS)
forms primary upgrading. From there 15,000 barrels per day is run being through the Distillate Hydrotreater (DHU) which
improves the quality of the distillate fuel oil streams by adding hydrogen.
The 50,000 barrels per day heavy oil upgrading project was originally announced in August 1983.
Consumers'
Co-Operative Refineries contributed their existing refinery to the project, while the provincial government
provided 20 percent equity funds. The federal government and the Saskatchewan government provided loan guarantees for
80 percent of the costs as debt.
NewGrade selected process technology licensed by Union Oil of California for the ARDS and DHU. The integrated facility is
capable of producing a full slate of refined products or alternately 50,000 barrels per day of upgraded crude oil or any com
bination of these two scenarios.
Operations include the processing of over 50,000 barrels per day of heavy and medium Saskatchewan crude with approximately
80 percent (40.000 barrels per day) being converted to a full range of refined petroleum products and the remaining 20 percent
(10.000 barrels per day) being sold as synthetic crude.
Operations in 1994 have experienced a heavy crude oil charge ratio of up to 55.000 barrels per day, and the Atmospheric
Residual Desulfurization (ARDS) unit has had a charge rate of 32,000 barrels per day. The Distillate
Hydrotreater/Hydrocracker routinely operates at up to 15,000 barrels per day.
The plant design capacities are: crude unit, 50,000 barrels per day, ARDS, 30,000 barrels per day, DH, 12,000 barrels per day.
Financial restructuring took place in October 1994. Saskatchewan and Consumers'
Cooperative each contributed $75 million
dollars and will share cash flow deficiencies equally up to $4 million each per year. Canada contributed $125 million and Sas
katchewan assumed all remaining guarantor committments.
Project Cost: $700 million
- ORIMULSION PROJECT Petroleos
de Venezuela SA (PDVSA) and Veba Oel AG (T-145)
Venezuela's state-owned oil company, Petroleos de Venezuela SA (PDVSA), and Germany's Veba Oel AG are developing the
heavy crude and bitumen reserves in the Orinoco Belt in eastern Venezuela. The two companies conducted a feasibility study
to construct a facility capable of upgrading 80,000 barrels per day of extra heavy crude. Development plans for the next 5 years
call for production of 1 million barrels per day.
About 60 percent of this production would be Orimulsion, a bitumen based boiler fuel. The remainder would be converted to
light synthetic crude oil. PDVSA can produce and distribute 50,000 barrels of Orimulsion per day, with capacity in hand to
double that.
Orimulsion has been produced from the Morichal Field in Eastern Venezuela since May 1988.
PDVSA joined forces with Mobil Corporation in 1992 to explore other options for marketing heavy crude in addition to
Orimulsion.
In October 1991, the Kashima-Kita Electric Power Corporation of Japan began firing their generators with 700 tons per day of
Orimulsion. Another Japanese utility, Mitsubishi Kasei Corporation, began working with Orimulsion in February 1992. Other
markets for Orimulsion now include Power Gen, Great Britian and New Brunswick Power Company in Canada.
PDVSA's research institute, Intevep, is developing EVC Orimulsion, an 80 percent bitumen, controlled viscosity, emulsion fuel
with improved stability. EVC Orimulsion has been tested at pilot plants in Morichal, Venezuela, according to Intevep, and the
fuel is expected to reduce land and marine transportation costs, while delivering higher energy content per pound. The new
and improved fuel is scheduled to enter the market sometime in 1994.
Project Cost: $2.5 billion
PEACE RIVER COMPLEX -
Shell
Canada Limited (T-160)
Shell Canada Limited expanded the original Peace River In Situ Pilot Project to an average production rate of 10,000 barrels
per day. The Peace River Expansion Project, or PREP I, is located adjacent to the existing pilot project, approximately
55 kilometers northeast of the town of Peace River, on leases held by Shell Canada Limited.
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SYNTHETIC FUELS REPORT, JANUARY 1995