Ulaanbaatar
Prime Minister visits oil field of "Petro China Daqing Tamsag"
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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.
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