DRAFT RESOLUTION SUBMITTED

Ulaanbaatar, Mongolia /MONTSAME/ A parliamentary draft resolution on intensifying works of erecting oil refineries was submitted on Tuesday, September 6 to the State Great Khural. It has been drawn up by MPs P.Altangerel, R.Amarjargal, D.Arvin, N.Batbayar, SBayar, N.Ganbyamba, Ya.Batsurri and other parliamentarians. Oil extraction started in Mongolia in the year 1998 as an experimental way. By December 31, 2008, Mongolia extracted a total of 3.1 barrel oil, and exported it to foreign countries. As the oil exploration in Mongolia has been intensified, the British Petroleum of the UK, the Western Geophysical, the Phillips Petroleum of the USA and the Sibneftegeofizika of Russia have drawn up research materials and then performed research works of geophysics, lithology, petrophysics, geochemistry and biophysics. Activities of oil extraction are done in accordance with a product-share contract approved by the government of Mongolia which has key some specific principles. In respect of these principles, a contractor must make an investment with 100 per cent to the oil extraction and bear own risk. In addition to it, a contractor shall pay money to the Mongolian government for exploiting the nonrenewable natural resources. As of today, seven foreign companies have been doing activities of the oil extraction on territories of Mongolia under the principles of the product-share contract. It is calculated that 2-4 years will be taken to erect oil refineries that have capabilities of processing two million tons crude oil a year. The cabinet considers that it is time to urgently begin constructions of small-sized oil refineries that provide the domestic needs because the technical and economic justification will get ready by the next year.

B.Khuder