A heavy residual petroleum feed boiling above 650° F.+ (345° C.+) is subjected to membrane separation to produce a produce a permeate which is low in metals and Microcarbon Residue (MCR) as well as a retentate, containing most of the MCR and metals, the retentate is then subjected to hydroconversion at elevated temperature in the presence of hydrogen at a hydrogen pressure not higher than 500 psig (3500 kPag) using a dispersed metal-on-carbon catalyst to produce a hydroconverted effluent which is fractionated to give naphtha, distillate and gas oil fractions. The permeate from the membrane separation may be used as FCC feed either as such or with moderate hydrotreatment to remove residual heteroatoms. The process has the advantage that the hydroconversion may be carried out in low pressure equipment with a low hydrogen consumption as saturation of aromatics is reduced.