Identifier
Created
Classification
Origin
06ULAANBAATAR433
2006-06-07 02:33:00
UNCLASSIFIED
Embassy Ulaanbaatar
Cable title:
MONGOLIA ENERGY UPDATE: OIL IMPORTS RISE
how-toVZCZCXRO0172 RR RUEHLMC RUEHVK DE RUEHUM #0433 1580233 ZNR UUUUU ZZH R 070233Z JUN 06 FM AMEMBASSY ULAANBAATAR TO RUEHC/SECSTATE WASHDC 9967 INFO RUEHUL/AMEMBASSY SEOUL 2275 RUEHBJ/AMEMBASSY BEIJING 5036 RUEHMO/AMEMBASSY MOSCOW 1501 RUEHVK/AMCONSUL VLADIVOSTOK 0044 RUEHSH/AMCONSUL SHENYANG 0214 RHEBAAA/DEPT OF ENERGY WASHDC RUCPODC/USDOC WASHDC 1034 RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC 0283 RUEATRS/DEPT OF TREASURY WASHDC RUEKJCS/SECDEF WASHDC
UNCLAS ULAANBAATAR 000433
SIPDIS
SIPDIS
STATE PASS MCC, OPIC, AND EXIMBANK
STATE FOR EAP/CM AND EB/ENRG
E.O. 12958: N/A
TAGS: ENRG PREL ELTRN MG RU CH
SUBJECT: MONGOLIA ENERGY UPDATE: OIL IMPORTS RISE
REF: ULAANBAATAR 212
UNCLAS ULAANBAATAR 000433
SIPDIS
SIPDIS
STATE PASS MCC, OPIC, AND EXIMBANK
STATE FOR EAP/CM AND EB/ENRG
E.O. 12958: N/A
TAGS: ENRG PREL ELTRN MG RU CH
SUBJECT: MONGOLIA ENERGY UPDATE: OIL IMPORTS RISE
REF: ULAANBAATAR 212
1. (U) SUMMARY: Mongolia is entirely dependent on
imported oil, importing 574,300 tons in 2005,
principally from Russia (80%),Kazakhstan, and China.
Mongolia exported its domestic production in 2005 of
25,000 tons to China, according to the Vice Chairman of
the Mineral Resources and Petroleum Authority (MRPA),
and it hopes 2006 production will hit 64,000 tons.
Investment in the oil sector remains small, at just
US$170 million to date, although a Chinese venture
plans to spend about US$100 million on exploration in
2006, according to press reports. END SUMMARY.
2. (U) Vice Chairman of Mongolia's Mineral Resources
and Petroleum Authority (MRPA) O. Davaasambuu told the
press last week that, in 2005, Mongolia imported
574,300 tons of oil, with 80% coming of the total
coming from Russia and the remainder from Kazakhstan
and China. Mongolia imported 5,200 tons of natural gas
in 2005, up from 1,568 tons in 2004.
3. (U) For 2005, Essentially all of Mongolia's 25,000
tons of domestically produced oil was exported to
China. Davaasambu noted that between 1998 and 2005 some
50 wells had been drilled and almost 650,000 barrels of
oil had been exported from the Toson Uul deposit. This
year, under a production sharing agreement concluded
between China's Daqing Oilfield Limited and Dongsheng
Corporation, another 55 test holes are planned. Plans
call for the pair to drill 450 wells by 2010 and to
begin production in 2012 with estimated total
production of 150,000 tons. Davaasambu said Mongolia
has 17 areas with oil potential, principally in the
country's southern regions adjacent to China. To date,
investment in the oil sector amounted to US$170
million, and Daqing plans to invest US$100 million this
year.
4. (U) According to press reports, the Petro Matad
Corporation, a subsidiary of oil importer Petrovis,
signed a production sharing agreement with the
Government of Mongolia to begin exploration in the
Matad-20 lease area in Dornod Aimag (province). They
have budgeted US$5 million for exploration during the
five-year lease.
5. (U) In terms of domestic petroleum retail
operations, Davaasambuu said the sector employs 6,000
staff members in over 300 oil companies and around 200
business which sell oil through about 100 stores and
over 1,000 gas stations. He noted that because
Mongolia imports all of its oil and refined products,
it is susceptible to high world prices.
SLUTZ
SIPDIS
SIPDIS
STATE PASS MCC, OPIC, AND EXIMBANK
STATE FOR EAP/CM AND EB/ENRG
E.O. 12958: N/A
TAGS: ENRG PREL ELTRN MG RU CH
SUBJECT: MONGOLIA ENERGY UPDATE: OIL IMPORTS RISE
REF: ULAANBAATAR 212
1. (U) SUMMARY: Mongolia is entirely dependent on
imported oil, importing 574,300 tons in 2005,
principally from Russia (80%),Kazakhstan, and China.
Mongolia exported its domestic production in 2005 of
25,000 tons to China, according to the Vice Chairman of
the Mineral Resources and Petroleum Authority (MRPA),
and it hopes 2006 production will hit 64,000 tons.
Investment in the oil sector remains small, at just
US$170 million to date, although a Chinese venture
plans to spend about US$100 million on exploration in
2006, according to press reports. END SUMMARY.
2. (U) Vice Chairman of Mongolia's Mineral Resources
and Petroleum Authority (MRPA) O. Davaasambuu told the
press last week that, in 2005, Mongolia imported
574,300 tons of oil, with 80% coming of the total
coming from Russia and the remainder from Kazakhstan
and China. Mongolia imported 5,200 tons of natural gas
in 2005, up from 1,568 tons in 2004.
3. (U) For 2005, Essentially all of Mongolia's 25,000
tons of domestically produced oil was exported to
China. Davaasambu noted that between 1998 and 2005 some
50 wells had been drilled and almost 650,000 barrels of
oil had been exported from the Toson Uul deposit. This
year, under a production sharing agreement concluded
between China's Daqing Oilfield Limited and Dongsheng
Corporation, another 55 test holes are planned. Plans
call for the pair to drill 450 wells by 2010 and to
begin production in 2012 with estimated total
production of 150,000 tons. Davaasambu said Mongolia
has 17 areas with oil potential, principally in the
country's southern regions adjacent to China. To date,
investment in the oil sector amounted to US$170
million, and Daqing plans to invest US$100 million this
year.
4. (U) According to press reports, the Petro Matad
Corporation, a subsidiary of oil importer Petrovis,
signed a production sharing agreement with the
Government of Mongolia to begin exploration in the
Matad-20 lease area in Dornod Aimag (province). They
have budgeted US$5 million for exploration during the
five-year lease.
5. (U) In terms of domestic petroleum retail
operations, Davaasambuu said the sector employs 6,000
staff members in over 300 oil companies and around 200
business which sell oil through about 100 stores and
over 1,000 gas stations. He noted that because
Mongolia imports all of its oil and refined products,
it is susceptible to high world prices.
SLUTZ