RE: Mongolia's Golomt bank12 May 2026 16:49
Petro China have been the dominant exploration company in Mongolia for 20 years since buying the northern part of the Tamsag basin from SOCO back in 2005, their peak oil was back in 2014 when they reached around 24,000 bopd, since then their field has been in decline hence Mongolias 14% drop in oil production this year, MATADs Heron field lies a few km south and it also is in the TAMSAG basin, our Heron field is virtually untapped but as you would expect Herons geology in south TAMSAG basin is identical to Petro China block XIX which has delivered millions of tons of oil over the last 20 years.
India have given/ loaned Mongolia 1.6 billion to build their first refinery, this is in line with Mongolias dream of being energy self-sufficient, also being built and nearing completion is a 530km pipeline, the pipeline is designed to transport crude oil from oil fields in the Tamsag basin in Matad soum (district), Dornod Province, to Mongolia's first domestic oil refinery located in Altanshiree soum.
We also know that Indian oil explorer OVL Videsh have had virtual meetings with the refinery operator earlier this year (Videsh Ltd (OVL), a subsidiary of giant Indian oil company ONGC), see link below re meeting hosted by Indian Embassy.
https://eoimongolia.gov.in/albumimage/Mzg
Mr Buck confirmed Indian interest during the 30th July presentation. On a visit to India on 15th October this year Mongolian Deputy Prime Minister, S. Amarsaikhan invited Indian companies to invest in oil exploration in his country.
https://diplomacyindia.com/mongolia-invites-indian-firms-to-invest-in-mining-oil-exploration/
Given India’s financial investment in the refinery it would seem likely Indian oil explorers may be making a move on Mongolian oil.
We know the refinery needs 30,000 bopd to run at 100% capacity, we know Mongolian current production is around 14,000 bopd and falling, enter MATADs untapped oil fields in block XX, we know there are billions of dollars of oil in the Heron field but we need a cash rich partner to fund Heron development.
No doubt Petro China would not be happy to see Indian explorers move into Mongolia but it bodes well for MATADs negotiations, always good to be able to play interested parties off against one another.
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