Premier urges to revise PSA with Petro China

Ulaanbaatar /MONTSAME/ During his working tour in Dornod aimag, Prime Minister J.Erdenebat visited the 21st area of Petro China Dachin Tamsag company. The company drilled 980 holes last year out of which 926 are operated. Over 734 thousand tons of oil has been extracted so far this year, out of the planned 1.3 million tons for 2016. “Heavy investments are required for the drilling process takes a lontg time and the low output is yielded. These factors as well as the oil price (USD 43), are the main reason of the low performance of this project”, explained the company leaders. As of the end of 2015, the Petro China Dachin Tamsag has allocated USD 518 million in tax to the Mongolian Government budget and USD 719 million – to the Chinese Government budget, in compliance with the product sharing agreement. Prime Minister J.Erdenebat reaffirmed the Government is working for ensuring favorable environment for the investors, and reminded that investors need to fully observe their obligations before the Mongolian laws and regulations. The PM highlighted the necessity for the company to train Mongolian professionals and increase the number of Mongolian workers in the company. The product sharing agreement need to be revised in accordance with the recent legal changes, he added.