Continuous in-situ combination process for upgrading heavy oil

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

• (a) contacting a 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 a first portion of aqueous non-molten sodium hydroxide containing at least 30% water based on the amount of sodium hydroxide, hydrogen at a temperature of from about 380.degree. C. to 450.degree. C. for a time sufficient to partially desulfurize the heavy oil and form sodium sulfide;
• (b) contacting said sodium sulfide of step (a) with steam under steam stripping conditions to produce sodium hydroxide and hydrogen sulfide;
• (c) recirculating said sodium hydroxide of step (b) to step (a) and recovering the hydrogen sulfide;
• (d) contacting the partially desulfurized heavy oil of step (a) with sodium metal under desulfurizing conditions to produce an essentially sulfur-free product oil having a reduced heteroatom and metals content, reduced viscosity, density and molecular weight, and sodium sulfide.