Mongolia can supply 30 years of its petroleum demand realizing its oil shale reserve

The Mongolian Oil Shale Association and senior officials of “Genie Oil Shale Mongolia” LLC made introductory presentation to the Standing Committee of Economy of SGK, on producing petroleum from oil shale. Mr. Harold Vinegar Ph.D., senior researcher at “Genie Oil Shale Mongolia” LLC, made presentation about the research work outcome of the company in the territory of Erdenesant and Lun soums of Tuv aimag.

He stated that the Mongolian oil shale quality is the highest in the world and its reserve is truly high (as high as USA and Israel). His company conducts mining business in two countries using environmentally sound technology. “This technology is similar to oil extraction process, drilling to the ground cone in the depth of the earth. This oil shale will be used to produce petroleum and diesel. The end production cost is cheaper than the petroleum we consume today, therefore, it is feasible.” he continued.

After presentation of Mr. Harold Vinegar from “Genie Oil Shale Mongolia” LLC, Q&A session continued by Mr. Harold Vinegar, Mineral Minister D.Gankhuyag, Mr. Ulziiburen, Head of the Oil Authority and Mr. Da.Ganbold, Chairman of the Oil Shale Association.

MP N.Nomtoibayar: What is the main reason of doing this presentation to MPs? Does Mongolia need to improve its legal environment in order to mine oil shale?

Da.Ganbold: Because of the price of petroleum, we decided to extract and process oil shale. But just mining and refining is not enough. Therefore, we considered the technology that is offered by “Genie Oil Shale Mongolia” LLC. The reason of this presentation is that, during his visit to USA and Canada, Speaker Z.Enkhbold learned about the technology of this company and advised us to make presentation to certain officials and provide detailed information. Two days ago we made presentation to business community. Law on Oil is being amended and will be presented to the State Great Khural. How this amendment will regulate oil shale is your concern.

Harold Vinegar: Process and extraction technology will guide the issue where to belong or in which law to be regulated. If oil shale will be extracted and processed according to our technology, then Law on Oil shall regulate the related issue. Realizing oil shale will help Mongolia to supply its domestic need of petroleum, and even it can export its product. We think that oil shale reserve is even higher than coal reserve.

G.Ulziiburen: The Government made agreement with “Genie Oil Shale Mongolia” on research study. If Mongolia shall mine oil shale and extract, open tender bid will be announced and “product share agreement” will be signed.