Continuous in-situ combination process for upgrading heavy oil

A continuous process for removal of organically bound sulfur and decreasing the heteroatom and metals content and viscosity, density and molecular weight of a heavy oil comprising the steps of:

• (a) contacting a first portion of heavy oil containing organically bound sulfur, heteroatoms and metals wherein the organically bound sulfur is selected from the group consisting of mercaptans, thiophenes and sulfides, the metals are selected from the group consisting of iron, nickel, and vanadium and mixtures thereof and the heteroatoms are selected from the group consisting of oxygen and nitrogen with sodium sulfide, hydrogen and water at a temperature of from about 380.degree. C. to 450.degree. C. for a time sufficient to produce a stream containing a partially desulfurized heavy oil, water, NaHs and sodium sulfide;
• (b) separating the stream from step (a) into a partially desulfufized heavy oil stream and a stream containing water, NaHS and sodium sulfide;
• (c) treating the stream containing water, NaHS and sodium sulfide from step (b) to remove water and recover the NaHS and sodium sulfide;
• (d) treating the NaHS and sodium sulfide of step (c) with sulfur to produce Na.sub.2 S.sub.4 ;
• (e) electrolytically regenerating sodium metal from Na.sub.2 S.sub.4 ;
• (f) contacting the partially desulfurized heavy oil from step (b) with regenerated sodium metal from step (e) and hydrogen to produce a stream containing sodium sulfide and an essentially sulfur-free product oil having a reduced heteroatom and metals content, and a reduced viscosity, density and molecular weight;
• (g) contacting the stream from step f with water to separate the essentially desulfurized product oil from a recycle stream containing water and sodium sulfide;
• and
• (h) returning the recycle stream from step g to step (a) to treat a second portion of the heavy oil.