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| Mongolian and Chinese Companies Make Oil Exploration |
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 PetroChina Company Limited, the largest oil/gas producer and distributor in China, has been leading Chinese companies operating in Mongolia by its investments in Mongolia. There are hundreds of fully- and half-invested Chinese companies running in Mongolia. One of them is the PetroChina Daqing Tamsag LLC, established in Mongolia in 2005 by PetroChina Company Limited ("PetroChina"). China National Petroleum Corporation (CNPC) is the sole sponsor and controlling shareholder of PetroChina.At the recent meeting with MONTSAME General Director T.Baasansuren, Petrochina Daqing Tamsag Mongol LLC president Fang Baocai said the company made about 300 drillings in Tamsagbulag basin, Dornod province, since 2005 in search for oil. "Of the total drillings, oil has been dsicovered from 70 holes," he added. It is considered that oil discovery of every 20 of 100 drillings is sufficient. "Therefore, we are extending our operation in oil prospects," Fang Baocai added. The PetroChina Daqing Tamsag held the exploration rights in Contract Blocks XIX, XXI & XXII in Tamsagbulag basin in 2005. The exploration of Contract Blocks XIX & XXII and XXI will expire January 30 of 2010 and January 30 of 2012, respectively. Since 2005, The PetroChina Daqing Tamsag contributed 940,962 USD to Mongolia's state budget in 2005; 301,0951 USD in 2006; 6,563,282 USD in 2007, and 17,897,246 in 2008. A total of 3,972 employees worked in The PetroChina Daqing Tamsag in 2008; this number is expected to reach 5,064 in 2009. Mongolia's most succesful petroleum products importer and distributor, Petrovis Company is making the oil exploration business in Tamsag basin for the first time among Mongolian companies. Petrovis established a daughter company Petro Matad LLC to run oil exploration. According to the Petro Matad CEO Douglas J. McGay, executive director T.Amarzul, and general manager B.Dendevchuluun, the company's oil exploration operation is conducted on block XX in Tamsag basin of Dornod province. The Petro Matad company is listed on the London Stock Exchange. In 2006, Australian oil sector investors joined in with the Petrovis company to start exploration on block XX. First, all of the old data was assembled and re-evaluated. Much geological research was conducted in addition. Heavier investments were required for serious exploration and drilling. To raise the money needed, Petro Matad was listed on the London Stock Exchange which gave an access to the world capital market. This was the first ever step in Mongolia's practice. Today, Petro Matad numbers about 200 shareholders. In 2008, Petro Matad performed further detailed exploration work on block XX that included 2D seismic work and more detailed and expensive type of seismic research called 3D. A total of USD six million was spent on the exploration activity. This summer, Petro Matad hopes to drill its first well on block XX. Some USD 2 million is required for drilling one well at least 1,500 meters deep. It takes minimum one month.
Source: Montsame
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