A process for transforming high-S and high-metal residual oil includes such steps as hydrogenation reaction of residual oil, oil slurry, solvent, asphalt-removed oil, circulating heavy oil and solvent refined oil in a hydrogenating reactor under the existance of hydrogen and hydrocatalyst, separating products to obtian gas, naphtha, hydrogenated diesel oil and hydrogenated tail oil, cracking the said hydrogenated tail oil, and separating the resultant. Its advantages are low cost and raised yield and quality of light oil. |