A delegation, led by Mining and Heavy Industries Minister D.Sumiyabazar,  is currently working in the eastern provinces of Mongolia to see how efficiently the oil companies are operating. On 5 May, as part of the inspection, D.Sumiyabazar visited PetroChina Daqing Tamsag  LLC, which is extracting oil in the Tamsag area of Dornod Province’s Matad Soum.

The Mining Minister held a three-party meeting with Dornod Provincial Governor M.Badamsuren and Jiang Weidong, president of PetroChina Daqing Tamsag  LLC. At the discussion, the Dornod Governor complained that the Chinese company was not fulfilling its contractual obligations to hire 200-300 Mongolians who graduated by oil exploration and technical professions. Governor Badmasuren said that the Chinese had not hired a single graduate from the local Dornod Polytechnical College. In the Chinese defence, Mr. Jiang Weidong said, 75 percent of the 630 Mongolian  employees are locals and if they need more workers, they will hire locals.

Mining Minister D.Sumiyabazar instructed the Chinese company  to hire more locals, to provide details on sub-contributor and procurement activity, to undertake upstream rehabilitation activity, to maintain work safety standards and to complete the stipulated road construction requirement,  and to adhere to Mongolian laws.

The 100 percent Chinese owned PetroChina Daqing Tamsag  LLC has a 20 years agreement to exploit hydrocarbon reserves in the Tamsag area. From 2005 to 2017, the company extracted over 5.8 million of crude oil.