Abstract: The invention involves visbreaking heavy oil under mild conditions in a vertical vessel containing a vertical elongate ring spaced inwardly from the vessel wall to form an outer open-ended annular chamber and an inner open-ended soak chamber. Heavy oil at 220.degree.-600.degree. F. is fed to top of annular chamber. A mixture of visbroken residuum and heavy oil at 730.degree.-800.degree. F. is fed to top of soak chamber. There is heat transfer through the ring from the soak liquid to the annulus liquid to assist in maintaining mild temperature in the soak chamber. The two streams mix in the base of the vessel whereby the visbreaking reaction is quenched. Part of the product is recycled and heated to provide the feed to the soak chamber.