MUSCAT: United Engineering Hydrocarbon Technology LLC (UER), an Oman-based specialist in heavy and extra-heavy crude oil treatment and upgrading, is exploring new international business opportunities following a high-level visit by representatives of Pacific Coast Energy Company (PCEC) and Switzerland-based I-Capital AG to its facilities in Muscat.
The visit highlights growing interest in UER's patented heavy oil treatment technology, which the company estimates could reduce treatment costs by 30 to 40 per cent compared with conventional methods, subject to successful field validation and operating conditions.
Dr Salim al Harthi, CEO, United Engineering Services (UES), highlighted the significance of the visit in opening new avenues for strategic cooperation, investment and international business development for Omani industrial companies.
“We see potential for a cooperation agreement that could pave the way for strategic partnerships and new business opportunities. The sector presents promising investment prospects for Omani companies, with opportunities to leverage our engineering expertise, industrial capabilities and technological solutions to support long-term growth and expand our presence in international energy markets”, said Dr Salim.
Abdullah bin Khalfan al Shueili, Chief Corporate Officer of UES, expressed optimism about UER's international growth prospects and the potential to establish long-term relationships with global energy operators and technology partners.
He emphasised the importance of leveraging Oman's engineering expertise, manufacturing infrastructure and industrial capabilities to introduce innovative technologies into international energy markets, while continuing to explore opportunities within the Sultanate of Oman.
The visit follows PCEC's recent signing of Production Participation Contracts (PPCs) with Venezuela's state-owned oil company, Petróleos de Venezuela, SA (PDVSA), covering the redevelopment of the Delta and Cabimas oil fields.
The agreements involve planned investments of approximately $3.5 billion, with long-term production targets of 150,000 to 160,000 bpd. The scale of the redevelopment programme presents potential opportunities for specialised technologies capable of improving heavy oil processing efficiency and reducing production costs.
UER is a joint venture between United Engineering Services (UES), the engineering and manufacturing arm of MB Group, and Rainer Tesch, developer of patented technology for heavy oil applications. According to the company, the technology is protected by patents granted in major oil-producing countries.
The partnership combines Oman's established engineering and manufacturing capabilities with proprietary technology designed to address technical and operational challenges associated with heavy and extra-heavy crude oil production.
At the centre of UER's international expansion strategy is its patented technology, designed to address three major challenges in heavy oil operations: high viscosity, oil-water emulsions and hydrogen sulphide (H₂S) content.
The technology aims to improve crude oil treatment efficiency by reducing viscosity, enhancing oil-water separation and lowering hydrogen sulphide levels, while potentially reducing reliance on conventional steam injection and high-temperature heating systems.
Such conventional treatment processes often involve significant energy consumption, infrastructure requirements and operating expenditure, particularly when handling heavy and extra-heavy crude oil.
According to UER's preliminary estimates, the technology has the potential to reduce heavy oil treatment costs by approximately 30–40 per cent compared with conventional solutions. The projected savings would depend on the characteristics of the crude oil, field operating conditions and successful technical and commercial validation.
For oil producers, this potential cost advantage could improve the economics of heavy oil development, particularly in fields where conventional treatment methods contribute significantly to operating expenditure.
The technology is also being assessed for its potential to upgrade extra-heavy crude oil by increasing its American Petroleum Institute (API) gravity, an internationally recognised measure of crude oil density.
An increase in API gravity could potentially reduce the volume of diluent required to transport extra-heavy crude oil and meet export specifications. Diluents, typically lighter crude oil or naphtha, are commonly blended with extra-heavy oil to improve its flow characteristics.
Reducing diluent requirements could provide additional economic benefits for heavy oil operators, depending on the results of field testing and commercial evaluation.
The visiting delegation included Klaus Hasbo, Chief Executive Officer of PCEC, together with Philipp von Trotha and Sebastian Dausch of I-Capital AG.
During the two-day visit on October 21–22, the delegation toured UER and UES facilities in Al Rusayl, and participated in technical discussions and laboratory demonstrations highlighting the company's engineering, manufacturing and technology capabilities.
The discussions focused on potential areas of strategic cooperation, including the possibility of establishing a formal agreement to support a field trial of UER's technology in Venezuela's heavy oil sector.
The proposed field trial would evaluate the technology under actual operating conditions, particularly its potential to upgrade extra-heavy crude oil, improve viscosity characteristics and reduce the need for diluents and conventional thermal treatment processes.
A successful evaluation could provide a foundation for future commercial applications in Venezuela and other international heavy oil-producing markets.
Alongside the discussions with PCEC and I-Capital AG, UER is pursuing potential business opportunities with energy operators and clients in Indonesia, Kuwait and Morocco, while continuing to explore applications within Oman.
These markets represent opportunities for innovative technologies that can address the technical challenges of heavy crude oil production and potentially improve operating economics.
The company's international expansion strategy focuses on building strategic relationships with energy operators, technology partners and industrial stakeholders to support the evaluation and potential commercial deployment of its technology.
The joint venture between UES and Rainer Tesch reflects the potential for collaboration between established Omani industrial companies and international technology developers to deliver specialised solutions for the energy sector.
As oil producers increasingly focus on improving operational efficiency, managing production costs and reducing energy-intensive processes, technologies addressing the challenges of heavy and extra-heavy crude oil could offer new opportunities for industrial innovation and commercial development.
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