GOVERNMENT TO COOPERATE WITH BG GROUP IN PETROLEUM EXPLORATION

Ulaanbaatar /MONTSAME/ The duties of the "BG Mongolia Holdings Limited" will be partially transferred to the "Central Asian Petroleum Corporation" LLC. Such a resolution had been made by the Cabinet of Ministries, said the Mining Ministry at the "Transparent Mining" media release Wednesday. It means that the duties, reflected in the product-sharing agreement with the Petroleum Authority of Mongolia on "Bogd IV" and "Ongi V" sites, will be passed to the "Central Asian Petroleum Corporation". Upon enacting a renewed version of the Petroleum Law, Mongolia quickly restored the interests of foreign investors, and the Government commenced discussions with global companies including BG Group, Chevron and Anadarko. As a result, a cooperation agreement has been concluded between the Petroleum Authority and BG Group of the United Kingdom. According to the agreement, USD 28 million investments will be made in Mongolia, where 13.6 million in 2015 and 13.0 million in 2016 will be dedicated to the exploration. The Government received USD 1.4 million in accordance with the product-sharing agreement in 2014 and 2015. The sides also negotiated to allocate an additional financing for other required works equal to USD 4.55 million. A total investment for the petroleum sites will total to USD 32.55 million. The BG Group is experienced in making investments in the place with considerable high risks and has discovered 15 large-scale deposits within the last 15 years. The Group is a leading natural gas extractor in the world, with assets equivalent to 45 billion in terms of current value, and operates in 20 countries.