The European Bank for Reconstruction and Development (EBRD) will be making a USD6-million equity investment in Petro Matad Limited, the first Mongolian oil exploration and production company. The majority share in the company is owned by Petrovis LLC, the largest oil products distributor in Mongolia. Petro Matad holds production sharing contracts with the Government, entitling the company to operate on three petroleum blocks, including the company’s main asset Block XX, located in Tamsag Basin, in the far eastern part of Mongolia, near the Chinese border. The EBRD investment will be used to finance the drilling of three wells in the block, as well as to support Petro Matad’s further exploration in the recently awarded Blocks IV and V. The EBRD will purchase approximately 17 per cent of Petro Matad’s newly issued shares and will have a seat on the company’s Board.
“This transaction will strengthen the role of the private sector in the Mongolian economy, and will help reduce Mongolia’s energy dependency on external providers… In addition, the project will bring new and improved environmental and corporate governance standards,” said Mr. Kevin Bortz, EBRD Director for Natural Resources. On his part, Mr. Gordon Toll, Chairman of Petro Matad, said, “Petro Matad takes pride in the fact our company has received such investment from the EBRD, and this marks a meaningful path forward for the fast developing Mongolian private sector. ”