Syntroleum Wins Another Oil-Company Licensee

On Feb. 5, Syntroleum Corp. (Tulsa, Okla.) announced a nonexclusive license with Kerr-McGee Corp., giving Kerr-McGee rights to use the Syntroleum Process outside of North America for converting natural gas into easily transportable synthetic crude oil and transportation fuels. In conjunction with the transaction, Syntroleum acquired certain hydrocarbon processing technology and related patents, which, the company believes, have the potential to enhance production of transportation fuels.

Syntroleum has developed an innovative liquefaction process, based on Fisher-Tropsch chemistry, to convert natural gas or other hydrocarbons to a fuel-grade liquid [See related article, Gas-to-liquid Synfuel Technology steps Closer to Commercialization] The latest agreement gives Kerr-McGee the potential to monetize stranded gas assets while creating clean fuels for the next generation of automobiles and reducing greenhouse gas emissions worldwide.

"The combination of monetizing stranded gas around the world and producing extremely high quality products which are free of metals, particulates, aromatics, and sulfur opens up a wide range of new opportunities for the oil and gas industry," stated Mark A. Agee, Syntroleum president and COO. "We are pleased to add Kerr-McGee to the list of companies licensed to use the Syntroleum Process."

Other licensees to the Syntroleum Process include Texaco, ARCO, Marathon and YPF.