A crude oil enhancement system from US-based JLC Technologies, an oil and gas service company, is now available in the Gulf and should help oil producers earn higher revenues, the company's regional representative said yesterday.
"The new QXLM crude oil enhancement system enhances crude oil to allow producers to sell it at a higher price per barrel. Most refineries in the Gulf cannot handle heavy sour crudes and send it overseas for refining. We can tailor the oil to what the producer wants by bringing it to higher specifications," Mark Alsalih of JLC Technologies told Gulf News.
Sour crude contains relatively large amounts of sulphur.
"The QXLM system will offer tremendous benefits to oil producers as well as refineries. The units are also self-cleaning and easily maintained in the field," Alsalih said.
JLC has signed a series of exclusive agreements with companies in the UAE, Kuwait and Saudi Arabia to introduce the QXLM system in the region.
The system is modular and scalable, and can be installed as a small pilot unit or in facilities that can handle more than one million barrels per day of oil.
"The increasing oil demand and large reserves of heavy and intermediate crude in the Gulf have prompted us to pursue opportunities in the Gulf for our state-of-the-art crude oil enhancement system. This system can reduce weight by 20-30 per cent and reduce sulphur content, as well as remove BSW [base sediment and water] from heavy and medium crude," he said.
JLC has tied-up with National Holdings, an Abu Dhabi-based conglomerate. The UAE company aims to capitalise on the per-barrel enhancement value of the new JLC technology.
"Current market estimates of the enhancement value range anywhere from $9 to $12 per barrel, based on achieved results and current market prices for crude oil," Alsalih said.
JLC has also signed agreements for the Saudi market with Al Haitam Group and the Kuwaiti market with Kuwaiti Saudi Trading & Contracting Co, a subsidiary of the Fouad Alghanim & Sons group of companies.
JLC Technologies has started negotiations with more oil companies in the UAE and other Gulf countries.
Crude oil prices have reached record highs in recent months. Global demand for oil continues to rise as China and India expand rapidly.
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