Catalytic hydrocracking of an asphaltene-rich residue obtained by direct liquefaction of a Spanish subbituminous coal was carried out at different temperatures and reaction times. A kinetic study of asphaltene conversion was performed, and the chemical changes produced in the oil fraction during the process were studied by elemental analysis and H-1 n.m.r. There was a high asphaltene conversion (max. 47 wt%) to oil + gas, and the data fitted first-order kinetics for asphaltene conversion and for oil and gas formation. The presence of catalyst and hydrogen considerably inhibited coke formation. Hydrogen was predominantly incorporated in the oil fraction, giving less aromatic structures, and cracking reactions mainly occurred in the asphaltenic fraction.