Petro China Daqing Tamsag LLC, an oil exploration and exploitation company operating in the Tamsag area of Matad sum, Dornod aimag, has started connecting oil wells with transmission tubes.

The 100 percent Chinese owned Petro China Daqing Tamsag LLC, a subsidiary of the Daqing Oilfield Company Ltd, is starting almost 500 oil wells out of the drilled 521 this year. The company that found 410 thousand tons of oil last year has planned to explore for 650 thousand tons more this year.

The additional 200 thousand tons of oil is due to the construction of new transmission tubes. Petro China Daqing Tamsag is the largest of four oil exploration companies in Dornod aimag.

Petro China Daqing Tamsag bought its exploration license from “Soko International” and has carried out oil operation since 2006 with the promise to build roads between Tamsag and Bichigt border crossing point by 2011. As of yet no road has been built.

The company exports 80 to 100 trucks of oil to China from Tamsag to the Bichigt border crossing point a day and caused the creation of 31 tracks.

The Speaker of Parliament, Zandaakhuu Enkhbold, during a visit in Dornod a month ago, said that “If the company fails to build road transportation their permit is not allowed.”

The company also extracts oil in Khulunbuir aimag, neighboring the Tamsag area, but here it is transported via tubes to the processing plant instead of trucks.