Mongolian
On November 1, Prime Minister G.Zandanshatar visited Dongsheng Petroleum Mongolia LTD in Zuunbayan, Dornogovi Province, to review the company’s operations and discuss plans for increased production.
Since its establishment in 2003, Dongsheng Petroleum has invested USD 480 million and extracted over 1 million tons of crude oil. Under the 1997 Production Sharing Agreement, the company has contributed USD 134 million to the state budget. The company currently operates 170 wells and plans to extract 56,000 tons of oil this year.
During the visit, the Prime Minister met with company executives and Chinese Ambassador Shen Minjuan, highlighting the importance of expanding exploration and production to supply crude oil for Mongolia’s upcoming oil refinery, expected to be completed in 2027.
Dongsheng Petroleum currently produces 50,000–60,000 tons of oil annually, with the capacity to increase output to 100,000 tons. Executives noted that certain legal and operational challenges remain that could limit further investment.
Under the leadership of China’s SINOPEC Group, Dongsheng Petroleum reaffirmed its commitment to continue investing in Mongolia’s petroleum and energy sectors, contributing to the country’s long-term energy security and economic development.
