Laws and Regulations

The Petroleum Law of Mongolia was adopted on 18 January 1991. The law was last revised in 2014 providing a clear and transparent legal environment and creating more favorable conditions for investors. The law regulates the operations of Mongolian and foreign entities or individuals on exploration, production, transportation, storage, and marketing of petroleum in Mongolia.

Production Sharing Contracts

Petroleum exploration and production in Mongolia are performed solely under PSCs signed over each petroleum block between the investor and Government of Mongolia.

As of 2024, there are a total of 33 petroleum blocks. 5 of these blocks have advanced to production and oil discoveries or oil shows have been reported in 7 other blocks so far.

The (proved) ultimate recovery (proved reserves plus cumulative production) for the 5 production PSC blocks was estimated at a total of 43.4 million tons (ca. 320 million barrels) of oil.

Mongolia’s petroleum sector is still in its early stages, but with continued exploration and investment, it could play a more significant role in the country’s future.