Abstract An extra-heavy crude oil underground upgrading process is described which involves the downhole addition of a hydrogen donor additive under steam injection conditions (280–315°C and residence times of at least 24-h). Laboratory experiments showed a 4° increase in the API gravity (from 9 to 12°) of the upgraded product, a two-fold reduction in the viscosity and, an approximately 8% decrease in the asphaltene content with respect to the original crude. Further increases on the temperature led to products with improved properties reaching 15°API at 315°C. It was found that the presence of the natural formation (catalysts) and methane (natural gas) is necessary to enhance the properties of the upgraded crude oil. From GC and GC-MS results a reaction pathway is proposed that involves hydrogen transfers from tetralin to the extra-heavy crude oil resulting in the formation of 1,2-dihydronaphthalene. This compound is then transformed into naphthalene, further upgrading of crude oil through hydrogen donat...