A method of compatibilization asphaltenes containing bituminous liquids which process comprises:a) reacting an asphaltene with phosphorous trichloride in the presence of a liquid to form a phosphochlorinated asphaltene containing from about 0.01 wt % to about 20 wt. % phosphorous;b) reacting the phosphochlorinated asphaltene with an equimolar amount of aliphatic or aromatic alcohols and phenols selected from the group consisting of:i) an aliphatic alcohol;ii) a naphthyl alcohol;iii) an alkyl quinizarin;iv) an oligomeric mixed polyether aliphatic terminal diol; andv) an oligomeric polyalkene terminal diol to produce a compatibilized asphaltene; andc) recovering the compatibilized asphaltene product.