Mongolsekiyu boss against foreign control of oil sector

T. Namjim, Director of Mongolsekiyu, the company that has signed an agreement with two Japanese companies, Marubeni and Toyo Engineering, to set up an oil refinery in Darkhan, said oil has a strategic role in every country’s economy and it is very important to make sure that production and processing of oil in the country should remain as much as possible in the hands of national companies. Foreign control of the sector will be against Mongolian national interest. Apart from the fact that 90% of the money spent by Mongolian consumers to buy petrol will go to a foreign company, national security will also be endangered. He felt steps should be taken early to declare the Darkhan refinery project as one of national importance.

Namjim felt the current fuel consumption per year is about 850,000 tons but once mining expands, industries come up and infrastructure is developed, this will reach more than 1.5 million tons by 2015 and keep growing thereafter. The refinery should thus have a capacity to produce two million tons per year. Construction work would begin next year. It will save the country MNT700 billion now spent on importing oil, and should recoup costs in four years.