RE: MNG Government Focus on Exploration12 Dec 2019 06:32
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"Yesterday, the Government instructed the relevant ministers, agencies and governors at all levels to encourage oil exploration companies to intensify their work and increase oil reserves. The event aims to provide continuous and reliable oil refineries in Dornogovi province. Our country is building 1.5 million tons of oil refineries per year. At the same time, 900,000 tonnes of oil is exported and exported from three fields in the Eastern Basin. This is equivalent to 60 percent of the plant's capacity. There is a need to “find” 600,000 tonnes of oil to get the full capacity of the plant. So the decision to intensify oil exploration
"According to the Production Sharing Contracts, we have 200 thousand tons of oil annually. So the plant is built, but it does not depend on the oil and the product it produces. " Then the Oil Law stipulates the priority right to purchase oil from its territory if a refinery is built. Such conditions are also included in the production sharing contract. The three oil-producing companies have invested about $ 4 billion. That's $ 280 million in exploration.
They will deduct the $ 3.7 billion worth of costs from the exploration. In other words, after the return of the investment, the product will be divided according to the agreement. We have 40 oil miners, and 60 percent of our investors have contracts. In the future, our share will increase to 60. Investors have now recovered $ 2 billion in costs. As a result, 200 thousand tons of oil extracted has a direct legal environment for Mongolia. However, our payment in the form of currency is replaced by our currency. "
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