CAPITAL: Ulaanbaatar
MONETARY UNIT: Tughrik
REFINING CAPACITY: None
OIL PRODUCTION: 700 b/d
OIL RESERVES: Unknown
GAS RESERVES: Unknown
MONgolia began producing oil commercially for the first time in more than 30 years in a project operated by SOCO International plc, London.
In the mid-1960s, Soviet explorers found oil in the Gobi basin, developed two fields, and later abandoned them.
A democratic Mongolia opened its doors to international oil exploration firms through licensing rounds in 1991 and 1992. SOCO was formed in January 1997 to operate four blocks once held by several oil firms.
Eight wells were drilled with a Chinese rig during 1993-97 on Blocks 19 and 21. Six wells encountered hydrocarbons, and five finds were thought to be commercial.
The 19-3 well tested 700 b/d and was brought into production in January 1998. SOCO installed a gathering station and 5,000 b/d processing plant near the well.
The crude was trucked to the Chinese border, where China National Petroleum Corp. sent it by pipeline and rail car to a refinery at Hohhot, 270 miles from Beijing.
SOCO was drilling more wells on blocks 19 and 20. It estimated probable reserves of 40 million bbl on Block 19.
Eventually it may push for construction of a $70 million pipeline to China`s Daqing refinery to the southeast.
