Mongolia has taken a major step forward in its crude oil supply plan during a key regional event. During this event, the Minister of Industry and Mineral Resources, Tuvaan Tsevegdorj, met with leaders from Dongsheng Petroleum Mongolia LTD. Notably, the discussion took place at the first Gobi Regional Council meeting in Dornogobi aimag.
At the meeting, the minister proposed a new direction. Specifically, he urged Dongsheng Petroleum to begin supplying crude oil to the upcoming Oil Refinery Plant. Since the plant is located only 60 kilometers from the extraction site, the proposal appears logistically sound. Therefore, the refinery’s location could reduce transportation costs and increase local energy efficiency.
Dongsheng Petroleum Mongolia LTD, which operates with full Chinese investment, has been active in Mongolia for several years. In fact, the company works under a Production Sharing Agreement approved by Mongolia’s parliament. Over time, it has drilled 132 exploratory and appraisal wells. Furthermore, it has invested a total of USD 367.4 million in petroleum development.
According to its latest reports, the company has identified 26.05 million tons of proven petroleum reserves. Of those, 2.07 million tons are confirmed as recoverable. So far, Dongsheng has extracted one million tons of crude oil. However, all of it has been exported to China.
Now, with the crude oil supply plan in focus, Mongolia wants to redirect part of this output for domestic use. As a result, the upcoming refinery will rely heavily on local sources. This makes Dongsheng Petroleum’s support even more vital.
Minister Tsevegdorj, therefore, emphasized the need for strong cooperation. He pointed out that national energy goals depend on partnerships like this. Moreover, he highlighted the strategic advantage of producing and refining crude oil within Mongolia.
Consequently, if the crude oil supply plan moves ahead, it could reshape the nation’s energy landscape. Mongolia could refine its own crude oil, reduce dependence on imports, and strengthen its economy.
Ultimately, this collaboration could mark the beginning of a new energy chapter for Mongolia.
