In accordance with the report Genoil Inc (OTC PINK: GNOLF) signed an agreement with the nephew of King Salman to develop a greenfield Genoil Upgrader with a capacity of 600,000 barrels per day in the Kingdom of Saudi Arabia. This is stated to be a complex as one of the largest refining or upgrading complexes in the world on the scale of Aramco’s Ras Tanura refinery, the largest in the Middle East or Exxon’s Singapore Refinery. Genoil estimates the project to cost approximately $5 billion USD, the project will exclusively be utilizing Genoil’s Upgrading Technology “GHU” Process.
Genoil states that it will license its proprietary technology, process design package, training, and advisory services, as well as proprietary catalyst and equipment supply. The Syncrude produced from this project will be very environmentally friendly because it will have no refining residue and instead produce a much greater yield of transportation fuel.
The report states that the Parties have agreed to utilize Beijing Petrochemical Engineering Company to perform a detailed feasibility study, the Front-End Engineering Design (FEED), to do the project management and act as project EPC contractor. They will also be the EPC contractor for the construction of any required infrastructure such as storage tank farms, project offsite facilities including a product export terminal, and pipelines.
As estimated by the report the project will be very stimulative to the local economy and to create a minimum of eighteen thousand jobs for the Kingdom of Saudi Arabia. Genoil will prioritize utilizing many local existing contractors and local manufacturing vendors. The parties also agreed that once the project is up and running it should be operated by Beijing Petrochemical and Yanchang Petroleum Limited.
The parties intend to utilize funding from a well-known development bank who already provided a $5 billion USD Letter of Intent to Saudi Aramco. The parties have been assured of available bank financing by the lender.
As reported by the press release the company also expects that this consulting agreement will be expanded to include further business and other potential projects and a long-term cooperation with this partner that will lead to the construction of a Genoil upgrader at the oil field. With these recent developments the company plans to expand its engineering team to accommodate the workload.
“We are seeing a strong interest in GHU technology with oil prices on the rise. These two major developments for the company are a culmination of years of hard work, dedication to success and our extraordinary effort to build a world class company centered around the most qualified engineers, talented industry executives combined with the most cutting-edge technologies. We expect major national oil companies will start developing their medium to heavy oil resources that will require Genoil upgrading based on the shortage of oil in the market. Western companies like Exxon and others have decreased their drilling due to environmental pressure. Therefore, we anticipate to have more announcements in the near future especially with oil prices soaring and oil producers urgently looking for environmental decarbonization technologies like Genoil’s upgrader. The GHU makes all oil production more competitive against renewable energy and can also increase the valuation of an oil field asset that is rich in carbon and in danger of a write down. Strong demand for Genoil’s highly profitable proven environmental upgrading technology will allow producers to capitalize on these market trends and increase their margins.” Says Bruce Abbott, President & C.O.O.
As per the press release Genoil is pleased to announce that the project feasibility study is well underway and it is anticipated that it shall be completed in December.