ID :
152943
Thu, 12/09/2010 - 19:54
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Shortlink :
http://m.oananews.org//node/152943
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PRODUCT-SHARING CONTRACT APPROVED
Ulaanbaatar, Mongolia, /MONTSAME/ On Wednesday, the Cabinet approved a product-sharing contract, signed Dec.23, 2009, between the Petroleum Agency of Mongolia (PAM) and the "Magnai trade" company on conducting petroleum operations in the area "Bayantumen-XVII" in Dornod aimag.
As a result of this, national companies will at their own expense conduct exploration and make initial database of geological and geophysical measurements and investigations in an area designated. Moreover, it will develop an intense search for oil, which will bring profits to the state budget and create new jobs.
"Magnai trade" plans to spend within five years 28.9 million USD for the search. By prior arrangement, a help will come from some national companies such as "Khet" and "Redhill Mongolia" and Australian-British joint investment company "BHP Billiton". The right to sign a production-sharing contract is given to the PAM head D.Amarsaikhan with the company as "Apexpo Investment" Co.Ltd to carry out activities related to oil exploration in the "Dariganga-XXIV” area as well.
According to the document, the parties agreed to improve the basic conditions of the agreement on production-sharing, to negotiate amendments to the draft treaty. In addition, the fee for the use of comprehensive natural resources /royalty/ has been increased from 10 percent to 10.75 percent, the minimum level of attributable to the Government, which begins with a 40 percent, has increased to 43 percent, while the maximum level of product-sharing for the Government will make 60 percent.
S.Otgonbayar
As a result of this, national companies will at their own expense conduct exploration and make initial database of geological and geophysical measurements and investigations in an area designated. Moreover, it will develop an intense search for oil, which will bring profits to the state budget and create new jobs.
"Magnai trade" plans to spend within five years 28.9 million USD for the search. By prior arrangement, a help will come from some national companies such as "Khet" and "Redhill Mongolia" and Australian-British joint investment company "BHP Billiton". The right to sign a production-sharing contract is given to the PAM head D.Amarsaikhan with the company as "Apexpo Investment" Co.Ltd to carry out activities related to oil exploration in the "Dariganga-XXIV” area as well.
According to the document, the parties agreed to improve the basic conditions of the agreement on production-sharing, to negotiate amendments to the draft treaty. In addition, the fee for the use of comprehensive natural resources /royalty/ has been increased from 10 percent to 10.75 percent, the minimum level of attributable to the Government, which begins with a 40 percent, has increased to 43 percent, while the maximum level of product-sharing for the Government will make 60 percent.
S.Otgonbayar
