Process for partial upgrading of heavy oil

A process for continuously upgrading heavy oil to produce upgraded oil, using a pulsed plasma reactor, the process comprising:

• forcing heavy oil through a heavy oil feed under a first pressure between 0.1 and 10 barg to an inter-electrode gap inside of the reactor, wherein the heavy oil feed first passes the heavy oil through a heat exchanger to adjust the temperature of the heavy oil and arrive at a first trim exchanger wherethrough the heavy oil passes to arrive at the reactor, and wherein the inter-electrode gap is defined by a distance between a first end of a negative electrode and a first end of a positive electrode, wherein a second end of the positive electrode and a second end of the negative electrode are connected to a power generator by a power line;
• forcing, at a second pressure between 0.2 and 20 barg, a light hydrocarbon gas through a light hydrocarbon gas feed and into the reactor to mix with the heavy oil therein, to form a liquid hydrocarbon-gas mixture in between the inter-electrode gap;
• generating a spark-discharge in the inter-electrode gap to react the liquid hydrocarbon-gas mixture;
• flowing reacted liquid hydrocarbon-gas mixture into a separator and separating light hydrocarbon liquid and light hydrocarbon gas from heavy oil;
• flowing the separated light hydrocarbon gas from the separator to a compressor and compressing the light hydrocarbon gas, wherein fresh hydrogen and fresh hydrocarbon gas is added to the light hydrocarbon gas to produce a hydrogen-light hydrocarbon gas mixture and recycling the hydrogen-light hydrocarbon gas mixture to the reactor;
• flowing heavy oil from the separator to the heat exchanger wherein the heavy oil from the separator combines with heavy oil from the heavy oil feed to produce combined heavy oil;
• and
• removing the combined heavy oil or blending the combined heavy oil with the light hydrocarbon liquid to produce upgraded oil.