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Clean technology engineering company Genoil has signed an agreement to develop five oil and gas fields in the Sakha Republic (Yakutia), Russia, with recoverable reserves estimated at 1.8 billion barrels.

Under the agreement, Genoil will provide technology and project consultancy, as well as advise on the finance and development of upstream and downstream projects in Yakutia. Genoil will be acting as the lead consultant on all aspects of the project, which will include engineering procurement and construction (EPC), equity and debt financing, and oil field services, as well as oil field operations and natural gas development.

The engineering firm is to develop oil fields and refineries and use its Genoil Hydroconversion Upgrader (GHU) desulphurization technology to convert heavy or sour crude oil into more valuable, compliant low-sulphur oil. According to Genoil, its technology will enable the procedure to be carried out at a "fraction of the cost of traditional refining processes".

The first oil field block is expected to yield 240,000 barrels per day (bpd) and is directly adjoining the Khatanga block being developed by Russian oil giant Rosneft. The estimated cost to connect this first oil block to the nearby East Siberia-Pacific Ocean (ESPO) and the Western Siberian pipeline systems is an additional $1.1 billion. The ESPO pipeline is likely to be used by other major oil companies developing energy assets in the Arctic.

Seismic work already completed is said to show geological reserves in this first block estimated in excess of 80 million tonnes (550 million barrels) of oil equivalents and hydrocarbon resources of approximately 800-850 million tonnes (5.5-6.0 billion barrels) of oil equivalents.

Bruce Abbott, Genoil's chief operating officer, commented, "The agreement to develop these five blocks and unlock the potential of the oil reserves in Yakutia represents a landmark opportunity for Genoil and our long-term shareholders. This opportunity represents the culmination of our hard work to integrate our GHU technology into the development of major oil fields right from inception. We continue to build on the successes we have had in developing international relationships across the globe. We look forward to reporting on the progress of this project on an ongoing basis as it develops."

In September, Bunker Index reported that Genoil had signed a tri-partite science, research and technical cooperation agreement with the UFA Scientific Research Institute of Petroleum Refining and Petrochemistry, located in Bashkortostan, Russia, and the OJS VNIIUS Institute, based in Tatarstan, Russia.

The scope of the agreement is to research, develop and market cutting-edge technologies and patents both in the Americas and globally. The partnership will focus on the petrochemistry, petroleum refining and gas chemistry industries where, through joint cooperation the parties aim to add value to client proposals.