CALGARY—The maker of a chemical additive that reduces the need for diluents when moving oil in pipelines said it has entered negotiations with a consortium of undisclosed Chinese oil firms for exclusive Asian distribution rights of its product.
Petro Motion Inc. president and CEO James Robson said his firm has entered negotiations with the oil companies for distribution rights for its patented EZ Flow additive.
“They have heavy oil issues similar to Alberta,” Robson said in a statement. “They have begun the due diligence process with the testing of specific heavy oil samples from a number of locations.”
According to Petro Motion, its EZ Flow additive “accentuates the behaviour of regular diluent, allowing it to act as a super viscosity reducer.”
The company claims independent field tests have shown using EZ Flow cuts the required amount of diluent by as much as 50 per cent.
Robson goes on to claim that the tests in Alberta show the product can have “immediate savings” of $4 to $5 per barrel of oil “without any investment in capital costs.”
“The Chinese want to immediately seize this cost savings opportunity,” he said. “It’s interesting that the Chinese are moving so quickly, yet EZ Flow was invented and developed for simple implementation in Alberta.”