A steam-based method and system for recovering and processing a hydrocarbon mixture from a subterranean formation. Steam is injected into the subterranean formation to mobilize said hydrocarbon mixture, then the mobilized hydrocarbon mixture is recovered, a self-sufficient diluent is added, and the mixture is separated to produce separated water and separated hydrocarbon. The separated hydrocarbon is deasphalted to produce a deasphalted hydrocarbon and asphaltenes, which is combusted in an oxycombustion process to generate steam and/or energy and CO2, and said the steam is injected into the formation.