Prime Minister visits oil field of "Petro China Daqing Tamsag"Video
Prime Minister of Mongolia U.Khurelsukh got acquainted with the operation of oil extraction of “Petro China Daqing Tamsag” company from fields 19 and 21.
Prime Minister U.Khurelsukh met with the authorities of the company and exchanged views on possibilities of further cooperation, current situation and prospects of the extraction.
“Petro China Daqing Tamsag” company has been producing 7.5 million tons of oil since the Production Sharing Agreement was signed in 2005. The oil extracted from the field 19 is exported through Bichigt port of Sukhbaatar aimag, while the oil extracted from the field 21 is exported through Bayankhoshuu port. 2015 was the peak year of oil extraction, reaching 1 million tons, however the extraction amount is decreasing in recent years with annual average extraction of 800’000 tons, reported the company. Still, the company officials said that they can supply oil to the refinery to be built by increasing the oil extraction.
During the PM's visit, the Professional Inspection Agency introduced the results of the inspection, made in the company. According to the inspection, 'Petro China Daqing Tamsag company should secure chemical hazardous waste storage and waste water to the environment and make amendments to the Production Sharing Agreement. In addition, the Professional Inspection Agency considers it necessary to charge royalty on oil extraction, to alter customs tax exemptions of companies and subcontractors and to make foreign labors pay social security premium to Mongolia.