Tuesday 23 April 2013

US energy firm to explore oil shale potential in Mongolia

A subsidiary of a US energy firm has signed a five-year deal with the Mongolian Government to explore and evaluate the commercial potential of oil shale resources in the country.

As part of the agreement with the Petroleum Authority of Mongolia (PAM), Genie Oil Shale Mongolia (Genie Mongolia) will identify the oil shale resource on a 34,470 km2 area in Central Mongolia and conduct a pilot test using technology on appropriate oil shale deposits.

O. Erdenebulgan, Mongolia's Vice Minister of Mining said: "Utilising Mongolia's extensive oil shale reserves to reduce our dependence on imported oil is a strategic priority for the Government."

Genie Energy, the owner of Genie Mongolia, said it is the only company that has received an oil shale survey contract in Mongolia. It started evaluating the country’s oil shale deposits after signing a joint survey agreement last year and aims to proceed to commercial development via a production sharing agreement in line with Mongolian law.