Recently, KBR, Inc.’s (KBR - Free Report) ROSE (Residuum Oil Supercritical Extraction) technology was selected by Japan’s JX Nippon Oil and Energy Corporation for its refinery expansion project. This is the second time the latter is using this state-of-the-art technology.
The ROSE technology is an efficient solvent-extraction for recovering higher value products from oil residues. ROSE units yield deasphalted oil -- which are excellent feedstocks for fluid catalytic crackers and hydrocrackers -- and also recover resins and asphaltenes that have a variety of uses.
This time JX Nippon Oil and Energy Corporation will be utilizing this technology for its Kashima refinery expansion. Deasphalted oil (DAO) extracted from the ROSE units contains less quantities of asphaltene which help reduce catalyst consumption; thereby improving efficiency of downstream hydroprocessing units.
Ultimately, this technology is expected to increase the profitability of the refinery. The expansion of the Kashima refinery project is expected to complete by 2015 end.
KBR is an industrial construction and engineering facility provider, offering services to hydrocarbon, chemical and petrochemical industries. KBR has a 60 year old legacy of providing construction and maintenance services. Going forward, with growth of demand for construction and maintenance services, we expect the company to secure more contracts.
KBR currently has a Zacks Rank #2 (Buy). Some other stocks worth considering at the moment include Fluor Corp. (FLR - Free Report) , Jacobs Engineering Group Inc. (JEC - Free Report) and Pernix Group, Inc. . All three carry a Zacks Rank #2 (Buy).