Introduction
Genoil is poised to become the leading worldwide energy provider by collaborating with a leading Chinese policy bank and Chinese companies to provide project financing, drilling, production, and processing services for the oil industry. Through these partnerships and strong financial relationships, Genoil can supply the oil industry with a full range of products and services, from exploration through production; solutions for hydrocarbon development and recovery, upgrading and environmental protections services. Complemented by partners who have many years of operational experience Genoil can provide a wide range of process technologies at unparalleled value to our customers.
Market Overview
There are 900 billion proven barrels of heavy and medium crude oil in the world. The scope of the opportunity is Genoil can convert these 900 billion barrels creating an average increased incremental value of $20.00 per barrel based on $50 Brent Crude over the next 20 years. Genoil has the capability of unlocking $18 trillion in value over this period.
Revenue Generation
ECM Revenue – (Engineering and Consulting) – The ECM revenue involves the
upfront/basic engineering, project design, procurement and implementation for upstream and downstream projects. These revenues are typically 15% to 20% of the total project costs.
Licensing Fee / Royalties – This is a long-term licensing agreement where the fees are based on the profitability of the Genoil process where Genoil will capture 15% of the profit from each flowing barrel per day (a minimum of $3/barrel).
Latest Developments
- November 2016 signed $ 50 billion LOI with Grozneft to provide funding for projects in Russia and Chechnya.
- April 2016 received $5 billion LOI commitment from a major Chinese bank for the 1st stage of a project in Middle East
- Securing project financing of Genoil’s first heavy oil refinery in China. Contract signed last year. In January 2015, Signed $700 million contract with Zhongjie Petrochemical to build a new refinery in China. Chinese partner has invested $4 million already.
- February 2017, signed MOU with Bomin Group, a leading global physical supplier and trader of marine fuel, to develop low sulphur fuel products compliant with the International Maritime Organization’s (IMO) newly announced global low sulphur fuel regulations which goes into effect January, 2020.
- Jan 2016, Signed agreement with Beijing Petrochemical Engineering Corp. (BPEC) to guarantee Genoil projects and process. BPEC is a division of Fortune 500 Shaanxi Yanchang Petroleum Group.
Latest Developments In Depth
Zhongjie Petrochemical Project – Genoil has a $700 million joint venture contract with Zhongjie
Petrochemical Corporation who is one of China’s largest energy producers to place a 20,000 bpd GHU unit in the Hebei province of China. The new refinery will incorporate the GHU technology and will be located adjacent to the existing petrochemical facility. The new refinery will process a variety of crude feedstock. Genoil will provide the process engineering, detailed engineering, fabrication and construction services for the project working with an engineering company in China. Genoil is required to raise 70% of the total contract price into the project, an approximate $500 million. Once operational the project will have a ROE of 31% and a payback period of 8.16 years.
Middle East Medium Crude Oil Project – Genoil is working to close a contract for the construction of a 500,000 BOPD GHU facility with an estimated project cost of $5 billion. When operational, Genoil expects to receice a royalty of 15% or a minimum of $3.00 / barrel. On 500,000 BOPD the royalty would be expected to generate $540 million dollars annually.
South and Central America Heavy Crude Oil – Genoil is in discussions with several Central and South American countries to fund and develop oil projects in these regions.
Ship Fuel Oil Desulfurization Plant – Genoil is negotiating with several shipping lines to build upgraders for in excess of 16 million tons / year (320,000 bpd) of High Sulfur Fuel Oil (HSFO) currently 3.5%. GenOil’s technology would allow these shipping lines to meet the new International standard of .05% sulfur which takes effect in January 2020. The Chinese bank and engineering firm would lend all the money for the plant and provide necessary project guarantees. The estimated projects costs would be several billion dollars.
Other GHU Projects – It is our expectation to add an additional 500,000 bpd of upgrading capacity each year. This goal is based on recent conversations with prospective clients who are national oil companies. Each project would have an estimated licensing fee income of 15% of the total profit or a minimum of $ 3.00 per barrel. The company would also generate significant revenues for engineering services amounting to 20% of the total project costs. Project costs are estimated at $8,000 USD per barrel of capacity with the smallest GHU being 20,000 barrels per day or $160 million.
US Patent No. 7001502 : Process for treating crude using hydrogen in a special unit, : Special unit is a reactor that through high temperatures and high pressures breaks down the hydrocarbon molecules and adds hydrogen to the molecule. US 7510689)(expiration late 2019), US Patent No. 8147677 Method and apparatus for introducing fluids into a hydrocracking reactor (2027 expiration).