The State Specialized Inspecting Agency (SSIA) has found that crude oil from Toson-Uul XIX and Buir XXII has so far been exported without payment of any tax as the contracts with the Mineral Resources and Petroleum Authority (MRPA) did not have any provision for levying tax.  The agreements were signed in 1993 and 5.4 million barrels of crude has been exported from Toson-Uul XIX alone since 1998 without any tax. Output from both blocs continues to be exported without tax.

All these years, audit work had never studied the product sharing agreement and had concentrated on accounts only. The SSIA also feels there was no proper monitoring of how USD4.9 million paid by organizations for training activity has actually been spent. The MRPA has also failed to enforce any environmental rehabilitation work in areas explored and exploited.

The SSIA has delivered an urgent note to the Government suggesting a revision of the terms of the original contracts and to see how the loss of tax between 1998 and 2010 can be compensated.