China to explore oil in southern Mongolia
China to explore oil in southern Mongolia.
China to explore oil in southern Mongolia. The Mineral Resources Authority of Mongolia (MRAM) and Smart Oil Investment of China signed a production sharing agreement for oil exploration in southern Dornogovi province. A government tender for an oil explorer at Ergel 12, which is in Dornogovi was announced in 2014, and Smart Oil Investment of China was selected. The company received an eight-year exploration license. During that time, Smart Oil Investment plans to conduct gravity and magnetic exploration, 2D and 3D seismic surveys, and drill eight exploration and evaluation holes. Acting Director of the MRAM B.Baatartsogt underlined that the agreement is a big step for attracting more foreign investors to Mongolia’s oil sector. In accordance with the production sharing agreement, Smart Oil Investment will supply 40 percent of the oil explored to the government of Mongolia. The MRAM noted that Mongolia’s stake may increase to 70 percent if the company’s oil exploration is higher than 15,000 barrels per day.
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