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Petroteq announces refinery production milestone

Published by , Editorial Assistant
Hydrocarbon Engineering,

Petroteq Energy Inc. has announced that after a scheduled ‎temporary maintenance shutdown in January 2020, during which various process ‎improvements and adjustments were completed, it recommenced production at its ‎Asphalt Ridge facility located in Vernal, Utah. Since recommencement ‎on 19 February 2020, the plant has produced approximately 1900 bbl of oil, thus achieving an average ‎daily production rate of over 300 bpd on a continuous basis.

The maintenance ‎shutdown allowed the team to make adjustments and complete installation of critical ‎additional equipment. Furthermore, Valkor Engineering used this time to run a testing ‎regimen on the plant which will provide the final data points needed for a proposed ‎expansion of the Asphalt Ridge Facility to up to 4000 bpd of capacity.‎

‎The technology at the plant is flexible enough that it can produce a wide range of different characteristics of oils, which enables the company to cater to the specific needs of its customers. The company’s sweet heavy oil is being ‎sold at West Texas intermediate (WTI), less the cost of transportation with no further deductions. Based on the current production rate of 300 bpd and production costs of approximately US$30 – 32/bbl (inclusive of the costs of all plant expenses), the plant is currently operating on a break even basis.‎

Petroteq received a payment of US$96 500 from the State of Utah ‎County Roads Department for delivery of heavy unrefined oil to be used in their road ‎paving operations. In addition, the plant has received an additional purchase order for ‎a further US$250 000 of the same product from the same state agency.

With the International Maritime Organization’s new low-sulfur fuel regulations (IMO ‎‎2020) becoming effective, the company announced plants to produce a high ‎quality sweet heavy crude oil consistent with refiner and customer demand. Petroteq heavy sweet oil has an American Petroleum Institute (API) gravity in the range of 14 to 20 and a sulfur ‎content of less than 0.5%‎.

Petroteq believes that ‎its technology can produce a relatively sweet heavy crude oil from deposits of oil ‎sands without requiring the use of water, and therefore without generating ‎wastewater which would otherwise require the use of other treatment or disposal facilities which could be ‎harmful to the environment. The process is intended to be a more environmentally friendly ‎remediation technology that leaves clean residual sand that is free of hydrocarbons, and can be returned to the environment, without additional remediation.‎

According to Alex Blyumkin, Executive Chairman of Petroteq, “The company has been working ‎with our engineering partners to improve production levels while still maintaining our ‎high quality oil. We have also been conducting engineering and process testing that is ‎critical in moving us toward our target expansion of 4000 bpd in capacity. The ‎work carried out this last month has been extremely beneficial in terms of increasing ‎productivity and is expected to enable us to achieve actual production closer to our current ‎nameplate capacity of 1000 bpd. I would like to personally acknowledge the ‎workers onsite who have carried out this remarkable achievement while working in ‎what can only be described as very cold and inhospitable weather conditions in ‎January and February.”‎

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