Asia Pulse: MITSUBISHI HEAVY SETS SIGHTS ON MIDEAST OIL EXPLORATION: “Forming a technological tie-up with Royal Dutch/Shell Group in boosting the efficiency of aging oil fields in the Middle East will open the way for Japan's Mitsubishi Heavy Industries Ltd to make a foray into the oil exploration business.”: “Royal Dutch/Shell will soon begin research on the application of the technology to its oil fields in such Persian Gulf nations as Qatar and Saudi Arabia.”: Wednesday December 14, 2005
TOKYO, Dec 14 Asia Pulse - Forming a technological tie-up with Royal Dutch/Shell Group in boosting the efficiency of aging oil fields in the Middle East will open the way for Japan's Mitsubishi Heavy Industries Ltd. (TSE:7011) to make a foray into the oil exploration business.
Under the deal announced Tuesday, Mitsubishi Heavy will transfer technology used to separate carbon dioxide from exhaust gas from industrial plants to the Anglo-Dutch firm.
They will apply the technology to boost oil-pumping efficiency by infusing CO2 into oil fields. Generally, only 30-40 per cent of oil reserves can be pumped out, but this technology will help drive the rate to around 50 per cent and thus prolong the life of aging oil fields.
Royal Dutch/Shell will soon begin research on the application of the technology to its oil fields in such Persian Gulf nations as Qatar and Saudi Arabia.
Mitsubishi Heavy started testing the technology to separate CO2 from exhaust gas at a domestic plant in 1991.
This technology is already in use at a plant in Malaysia and is expected to be introduced at two Indian urea plants in 2007.
The Japanese firm has been seeking opportunities to apply this technology in oil-producing nations, believing that it will help boost profitability of firms pumping out oil amid higher crude prices and rising global demand for energy.
Mitsubishi Heavy's ambition to enter oil development business is evidence that the market has begun to be exploited by firms beyond such conventional players as oil companies and trading houses.
Plant-engineering firm JGC Corp. (TSE:1963) has already started investing in a Mexican gas exploration project.
(Nikkei)
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