Velikoye oil field is the largest Russian oil field discovery in the last 20 years and the project is of significant interest to numerous international oil companies.
LONDON, UNITED KINGDOM / ACCESSWIRE / November 19, 2018 / Genoil Inc. (OTC PINK: GNOLF) David K. Lifschultz CEO of Genoil announced today that the corporation has signed an additional contract to represent the Velikoye oil field on behalf of JSC PetroleumGas "AFB" to investors. Genoil has already begun discussions with several financing sources in Russia as well as a few different interested oilfield services providers all of whom expect major financial sponsorship from China on this project. Genoil is to earn a fee for bringing investment to AFB and that we anticipate closing the initial investment round in the next sixty days.
AFB is an oil company holding both exploration licenses and production licenses for a total of 700 square kilometers. These licenses are estimated to contain 150 billion tons of oil and oil equivalent and Genoil Inc. will spearhead the development of the project. Genoil through its network of relationships is empowering private companies like AFB to finance the development of their oil fields against future deliveries of oil and to develop a structure to make this possible for them. AFB is in an excellent position to take advantage of this financing plan. Rosneft has been known to finance many oil fields in this manner, for example, their acquisition of TNK-BP was done like this.
The magnitude of the discovery of a large oil field in the Astrakhan Region came to light several years ago. Interfax at that time quoted the lead geologist at AFB that the company estimated the field's reserves at 150 million tons of oil equivalent and 40 billion cubic meters of natural gas confirming that this is the largest oil field discovered in Russia in the last 20 years. At the same time, it was noted that the Velikoye field has very good light and sweet crude oil. The estimated capital requirements to develop Velikoye is approximately $5 billion USD beginning with further seismic work, assessment of wells and initial production.
President & C.O.O. Bruce Abbott stated, "The Velikoye Oil Field is one of the most important oil fields in Russia which is attracting attention from serious investors and companies based all over the world." "Russia is one the leading global oil producers with over 12% of the world's oil reserves and about 10 million barrels per day of production."
AFB has two licenses for the right to geological exploration and production of raw hydrocarbons within the Tambov license block. The first license is for the Meso-Cenozoic sedimentary complex and is effective until 2030, and the second license is for the Paleozoic sedimentary complex and effective until 2036. There are no limitations on the validity of any license renewals.
Genoil is an independent exploration, production company which has experience drilling for oil and gas in the Caribbean. The company specializes in heavy oil development and is focused on long-term growth. Genoil has developed a proprietary, state of the art patented advanced hydroconversion process technology (heavy to light & sour to sweet). This advanced Hydroconversion Upgrader (GHU), converts heavy crude oils and refinery bottoms into clean crude that is much more valuable. This more valuable crude produces a higher value product slate meaning that this new crude oil refines into clean-burning fuels for transportation. The company is deeply focused on the downstream transportation refining industries especially shipping. Hydroconversion is a common and proven desulfurization process, capable of processing various feedstocks ranging from crude oil to Naptha.
The Genoil Hydroconversion Upgrader (GHU®), is an advanced upgrading and desulfurization technology, which converts heavy or sour crude oil into much more valuable light low sulfur oil for a very low cost. The GHU achieves 96% pitch conversion and 95% desulfurization with an operating cost of up to 75% less than the competition. For Conoco Canada Ltd, Genoil converted their bitumen of 6-8.5 API and converted it to 24.5 API. We also removed 92% of the sulfur-reducing the amount from 5.14 % to below 0.24%. These results were taken by Conoco Canada Ltd, who had them analyzed by Core Laboratories, one of the largest service providers of core and fluid analysis in the petroleum industry.
The State Unitary Enterprise ''Institute of Petroleum Refining and Petrochemistry of the Republic of Bashkortostan'' is located in the capital of the Republic of Bashkortostan, Russian Federation. This massive state-of-the-art Institute covers more than 12 hectares of land (30 acres) and has 20 research buildings on site. The institute employs about 500 engineers and staff and has a history of more than 60-years of experience in the field of hydrocarbon processing technologies and well recognized by the Industry. UFA is the number one institute in Russia and is funded by the government of Russia. The institute specializes in refining and heavy residue processing. 03.07.2018 on the basis of the Order of the Ministry of Land and Property Relations of the Republic of Bashkortostan No. 218 of 02.03.2018 the State unitary enterprise "Institute of Petroleum Refining and Petrochemistry of the Republic of Bashkortostan" was recently converted to a Joint-stock company Institute of Petroleum Refining and Petrochemistry (JSC INKhP).
Genoil Partner EPC Company BPEC was founded in 1979 and is a first-class engineering company based in Beijing and its parent company is the fourth largest Chinese oil company, Shaanxi Yanchang Petroleum Group Corp Ltd. BPEC currently has about 1200 employees and holds a class A qualification of engineering consulting and engineering design. The company has been mainly engaged in engineering consulting, engineering design, EPC, engineering technology development and other related business in the fields of refining, petrochemical, coal-chemical, natural-gas-chemical, oil and gas fields, storage and transportation, etc.
Formerly ''Yanchang Oil Plant'' founded by the Qing regime in Yan'an in 1905, Yanchang Petroleum is China's only century-old oil enterprise and the driller of the first oil well on the Chinese continent. Shaanxi Province where Yanchang Petroleum is located in an emerging key oil & gas province in China, with rapid growth of 5 million tons oil & gas equivalent on average every year since the beginning of the ''twelfth five-year'' period. In 2012, Shaanxi province became China's largest oil & gas-producing province with oil & gas equivalent of over 60 million tons. They are also one of the largest producers of coal in China with 18 billion tons of coal reserves, and 300,000 bpd of oil production.
As a technical partner of Genoil, VNIIUS is one of the leading research institutes in Russia in the field of production and consumption of hydrocarbon feed. With 50-years of experience in practical work allows us to render assistance to oil and gas producing companies, to oil and gas processing companies and also to companies of deep oil processing and sulfur recovery. VNIIUS has cooperated with Chevron and over one hundred different companies from around the world.
FORWARD-LOOKING STATEMENTS: Certain information regarding Genoil, including the availability of capital and other sources of funds and future plans, may constitute forward-looking statements under applicable securities law. Forward-looking statements are often, but not always, identified by the use of words such as ''seek,'' ''anticipate,'' ''hope,'' ''plan,'' ''continue,'' ''estimate,'' ''expect,'' ''may,'' ''will,'' ''intend,'' ''could,'' ''might,'' ''should,'' ''believe'' and similar expressions. Forward-looking statements are based upon the opinions, expectations, and estimates of management as at the date the statements are made and, in some cases, information received from or disseminated by third parties, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Forward-looking statements contained in this release necessarily involve risks and uncertainties associated with an oil and gas technology development and engineering corporation. As a consequence, actual results may differ materially from those anticipated. Accordingly, readers should not place undue reliance upon forward-looking information contained herein. Although Genoil believes that the assumptions underlying such forward-looking statements are reasonable given current market conditions, and information received or disseminated by third parties is reliable, it can give no assurance that such expectations will prove to have been correct. Genoil does not assume responsibility for the accuracy and completeness of the forward-looking statements and such forward-looking statements should not be taken as guarantees of future outcomes. Subject to applicable securities laws, Genoil does not undertake any obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. The forward-looking statements contained in this press release are expressly qualified, in their entirety, by this cautionary statement. Additionally, statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Further information on potential risk factors that could affect Genoil's financial results can be found in Genoil's disclosure materials filed on SEDAR at www.sedar.com and with the Securities Exchange Commission available at www.sec.gov.
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SOURCE: Genoil Inc.