Genoil (GNOLF) & Beijing Petrochemical Engineering Co Ltd (BPEC), a division of Shaanxi Yanchang Petroleum Group Company, have received a US$ 5bln letter of intent for an initial 500,000 bpd upgrading project, to be situated in the Middle East. The letter of intent from one of the largest banks in China is to cover the initial project cost, and will be presented to a major party in the Middle East. For this project, the goal of the consortium is to develop 3.5 mln bpd of upgrading capacity at a total estimated cost of US$35-50 bln. Financing will be subject to a number of conditions and approval of the contract terms by all parties.
China is actively seeking investment opportunities around the world and Genoil has demonstrated ability in establishing connections with major national oil companies and government ministries. The GHU represents an opportunity for China to invest in environmentally friendly global energy projects, developing clean sources of low sulfur fuels for the global market. Another project for 1 million bpd is currently under consideration by a second national oil company. Additional funding for future projects will be considered on a project by project basis.