Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Correct Knigel, thanks for pointing out my error.
Reminds me of a western oil and gas project I seen, the oil company had to go to outrageous lengths to buy off the local population... They were giving 6 figure sums to fishermen for "disruption" to fishing, etc, the problem was anyone who had a boat was claiming to be fisherman, there was all sorts of scams on the go, people were buying inflatables and claiming to be fisherman... The difference between that situation and this is Mongolia is sandwiched between Russia and China and nobody is queuing to setup shop in Mongolia, and also they need to start producing oil for their refinery + pipeline project,
master82: PM have told us in the last 2 RNSs they have petitioned the central government and it is going through the approvals procedure... From the last RNS
"At the same time, efforts are continuing apace to get the government to remedy the legal contradictions related to land access and usage issues that have previously impacted the work of Petro Matad and other operators in Mongolia. We are advised that proposed legal changes confirming land use rights, including input Petro Matad has provided, are working their way through the approvals processes within the central government."
I can only see one winner in this contest, the local council / permit office can play funny c__$ for a while, but the central government need new field development and exploration to ensure the oil supply to the refinery project + pipeline...
I'm hoping there is a dip on Monday and I will buy some more,
The lady in question has made another post 5 hours ago:
"The 20th square of oil, Petromatad company's BONNU Khatandalai LLC has a obligation to submit a resolution of the 13th resolution of 2020.07.06 to the Khatandalai LLC."
Looks like they want PM to resubmit something that has disappeared from (or was never originally put in) the archive from almost 2 years ago, this smells to me like a game of "lose the paperwork", the local council / permit office can keep tying things up indefinitely with these sorts of games (haven't followed procedure / paperwork got lost in the archive / meeting couldn't be held that day etc. etc.) then refusing to issue permits...
I think we need to keep in mind the following regarding the local permitting and local eco-protester problems:-
- Matad soum has a population of about 2500 people, or about 0.0004% of the population of Mongolia.
- There is a multi-billion dollar infrastructure project in progress (refinery + associated pipeline) which will bring energy security to the 3.3 million citizens of Mongolia
Does anyone believe that the Mongolian government will allow the local county council/permit office of a region with population of a couple of thousand people to derail its plans to bring energy security to the entire country?
The answer is obviously no - especially given the direction of travel of the oil price.
I don't have any concerns here, possibly in the worst case this may cause a short term delay, but in reality there can only be one winner in this contest - the needs of the several million will outweigh the needs of the couple of thousand.
If there is any dip in the SP I will be taking the opportunity to buy the dip and wait for reason to win out.
Nobody knows what this so-called "development" is about, it could be a shorter ploy to cause panic and tank the SP (it is obvious that there is paid rampers and derampers operating on this board, therefore it is not outside the realms of possibilities that the "activist postings" are part of that).
Even if the "activist" is correct, and something has been declared illegal, we have no idea what that is, or what the impact on Petro Matad would be.
I think the first thing to do is to email Investor Relations and ask for clarification, or ask them to put out an update via RNS, as others have said - in fact I will write them myself just now.
curiousandcuriouser: thanks for raising this point, much appreciated. I thoroughly enjoy reading any genuine new information relating to any share I am invested in whether bullish or bearish, and this is certainly information I hadn't come across before.
LOL this board is jammed full of rampers an derampers both.
I like to keep it simple ; why bother to construct a new refinery and 530km pipeline (contract awarded last week) if you do not intend to use it? The Mongolian government is exactly like PetroMatad shareholders, they have invested money into a project and want to a see return on investment;
Current hold-ups for MATD (local permitting hold-ups, fringe environmentalist complaints, etc) will get resolved favourably for MATD on the basis that central government needs the oil to supply its refinery project, and currently PetroChina is not providing them enough. It all boils down to the $$$$, it makes sense for central government to get PetroMatad into business for there own self-preservation, nothing more.
Any talk of Mike Buck whiling away the hours on a deckchair in Italy seems far-fetched, as the board will be overseeing progress and I doubt a big company like Petrovis will be happy to pump money into a project which will not deliver them any profit. And as we seen at the recent presentation the board is regularly reviewing progress and providing feedback to Mike as to future direction of travel.
AIMHO/DYOR
badprophet: as we all know and see just now with MATD and elsewhere, production cannot be brought online instantaneously, a slow ramp up would be expected, especially when each well can only generate 500 barrels/day... Looking at the PM investor presentation this slow ramp up is clearly shown on the presentation.
My interpretation of the situation with the refinery and reserves is the Mongolian Central Government will be compelled to encourage field development (a la Heron) and also exploration drilling, to ensure the refinery future requirements can be met... It is no use waiting until you need the oil before you take action, you have to take action in advance to ensure supplies can be met...
curiousandcuriouser: Why not share it on the billboard, save me having to wade through a million FB posts?
https://translate.google.com/translate?hl=en&sl=mn&u=https://24barimt.mn/80365.html&prev=search&pto=aue
Extract from interview with G.Yondon, Mongolian Minister of Mining and Heavy Industry, getting the refinery on line is a big priority for the Mongolian government to ensure there energy independence. And by extension that means ensuring sufficient crude oil will be available for the refinery commissioning and start-up.
-Reserve issues are discussed at the oil refinery. Even when operations begin, there are disputes over the availability of crude oil reserves. Are you conducting exploration and research to increase resources?
-Our oil reserves have increased slightly over the past year. Petro Matad has increased its reserves and has been certified by the Minerals Professional Council.
Areas 19 in Toson and 21 in Tams were selected. Previously, Petro China Daqing Tamsag conducted a large-scale exploration work in a large exploration area called Davst-31. At the end of the term, the company returned the field to the government and handed it over to the Mongolian refinery. The refinery has invited companies to explore the area. Proposals have been submitted to more than 30 companies. In order to increase reserves, these five or six blocks will be negotiated separately with companies on the site and exploration will begin.
Petro China Daqing Tamsag has expressed interest in some of our oil fields and said it sees opportunities. There is a possibility that additional reserves will be approved in some areas of Dornogovi aimag.
Tender awarded last week for the refinery pipeline connecting Dornod Aimag oilfield (where Petro China Daqing Tamsag LLC operate) to the under construction refinery:
https://montsame.mn/en/read/295058
"Ulaanbaatar/MONTSAME/. The Government made a decision on January 6, 2020 to transport the raw material of the oil refinery through a pipeline. Accordingly, the Ministry of Mining and Heavy Industry announced an international tender “to select a contractor to finance and construct an oil pipeline project in Mongolia,” and China’s the state-owned ‘Norinco International Cooperation’ Co.Ltd has won the tender.
On April 18, a cooperation agreement of the project to construct a crude oil pipeline in Mongolia was signed by State Secretary of the Ministry G.Nandinjargal, CEO of Mongol Refinery state-owned LLC D.Altantsetseg, CEO of Erdenes Tavantolgoi JSC B.Gankhuyag, and General manager of Norinco International Cooperation.
Crude oil from the Dornod aimag’s oil field will be transported to the Oil Refinery, which is currently under construction in Altanshiree soum, Dornogobi aimag through a 530 km long pipeline.
Norinco International Cooperation will complete the construction of a pipeline within three years or ahead of the commissioning of Oil Refinery."
https://montsame.mn/en/read/295058
And what good is a refinery pipeline without enough crude oil to go down it? No good at all. But I am sure PetroMatad will be happy to make up for any shortfalls in adjacent blocks...
curiousandcuriouser: Can you post what it says about the meeting on the 29th, I couldn't find that bit unfortunately. That was the thing I was looking for, but at least somebody found it - care to pass along what it says?
Master: So what's causing the delay with the permits, if not local environmentalists?
Mullins58: There was 435 shares of the post, 735 likes, 142 comments - keeping in mind Matad district has a population density of 0.11 people per square kilometer. Anyway, for me I'm happier now that I think I understand what the problem is, I was more concerned before when there was no progress and I didn't understand why. At least the lack of progress with the permits is starting to make sense.
The ????? ????? text is "Petro Matad" in Mongolian text, the bill board obviously can't cope with the slavic characters...
Seems there is a fair amount of local opposition to Petro Matad, I done some searching on facebook posts for ????? ????? (Petro Matad) and narrowed the search to "Posts" and the date to "2022" and up popped a photo of a lady holding a sign which said "Oil 20th Field is Protesting" in Mongolian and "STOP PETROMATAD" in English... Date of posting was 22nd April, e.g. a couple of days ago!
Judging from the other posts the lady made this also applies to PetroChina... I guess it's becoming clearer to me why progress is so slow to get those permits, local government is probably getting a hard time from the local environmental groups and is holding back the permits as a result... However,
I take comfort from the fact that the Mongolian refinery will be coming online soon and central government will be keen to get the oil flowing to ensure this is well-supplied... Therefore I expect they will be under pressure to change the law to prevent regional administrations from throwing a spanner into the works for oil exploration and production... After all why spend billions on a refinery if you don't have the crude oil to use it?
BTW, If anybody wants to see the posting search in facebook for "????? ?????" and filter the search to "Posts" and the dates to "2022".
Master82: How do you find those posts? Or can you post them please.
Thanks Master82. Interesting posts. It doesn't sound like the locals are overly-thrilled about PetroMatad or PetroChina both. I guess it comes down to the needs of the many, we need the Mongolian Central Government to clamp down on this NIMBY mindset and streamline the permitting process.
GaryMegson: That post doesn't seem to be about PetroMatad.
Master82: Can you provide the link to the facebook meeting page you mentioned?
Master8: Can you provide the link to the facebook page where the meeting is discussed?