Progress reported at new ultrasound oil processing facility in UAE

The board of Fujairah Oil Technology Inc., a joint venture between SulphCo Inc. and Fujairah government owned Trans Gulf Petroleum, met in London on Aug. 10 to review progress of the Sonocracking project currently under construction in the UAE. Specifically, the board of directors focused on the necessary construction of a crude oil pipeline between the FOT facility and the designated crude oil storage tanks. To date, eight of 14 water separators have been built and shipped to Fujairah...

SulphCo Inc. recently announced a second interim progress report on its 210,000 barrel per day crude oil processing plant in the UAE.

SPARKS, NV, Aug. 29, 2006 -- The board of Fujairah Oil Technology Inc., the joint venture between SulphCo Inc. and Fujairah government owned Trans Gulf Petroleum, met in London on Aug. 10 to review progress of the Sonocracking project currently under construction in the UAE. Specifically, the board of directors focused on the necessary construction of a crude oil pipeline between the FOT facility and the designated crude oil storage tanks.

During the board meeting, Vera Group, the general contractor for the project presented an initial design of the pipeline as well as a construction and commissioning plan and financial offer to complete the project in a timely manner. The board will review this offer as well as seek and review other offers in the coming weeks. It also discussed the initial crude oil storage requirements as well as the timetable to secure this storage in parallel with the facility start-up date. And it further discussed the need for future storage capacity which may necessitate the construction of FOT owned storage tanks. A decision on future storage will be agreed upon during the next FOT meeting scheduled for late September 2006.

To date, five of the seven 30,000-barrel-per-day Sonocracking units have arrived in the UAE. The sixth unit has been shipped from Germany after undergoing successful process control testing. The seventh unit will be held in Germany pending further process verification at a major European refining site. Vera Group informed the FOT Board that the Fujairah facility construction would be completed within 10 days to such an extent allowing onsite assembly and commissioning of the units to begin. To date, eight of the of the fourteen water separator units have been constructed and been shipped to Fujairah. The next water separator, currently under construction, will be held for use in Europe. The remaining water separators will be shipped to Fujairah according to schedule.

Testing of ultrasonic probes for output, repeatability and longevity continues daily at the SulphCo facility in Sparks, Nevada. The testing continues to show positive results in all categories of evaluation.

"SulphCo Management has taken numerous trips to Europe and the Middle East in the last month to personally assess the progress of the project in Fujairah," said company president Peter Gunnerman. "At the same time, SulphCo continues to work closely with our growing list of customers in Asia, Europe and Latin America."

SulphCo will continue to provide updates on the Fujairah project through further reports and pictures posted on its web site www.sulphco.com. It has developed a patented safe and economic process employing ultrasound technology to desulfurize and hydrogenate crude oil and other oil related products. The company's technology upgrades sour heavy crude oils into sweeter, lighter crudes, producing more gallons of usable oil per barrel.

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Also see:
-- "MWH CEO Edward Urquhart joins SulphCo Board of Directors"
-- "SulphCo enters into LOI with major Korean oil refiner"

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