In 1941, Mongolia’s consumption of petroleum products was only 4163 tonnes – today, 77 years later, it is 1.2 million tonnes. Over the years, almost all oil product imports have come from Russia – now, 21 companies are exploring for crude oil in 25 locations in across the country.

Because Mongolia has no refining capacity – a refinery is being constructed with an Indian loan – it currently has been exporting 5.6 of its 5.9 million tonnes of own crude oil directly to China. The rapidly developing sector has contributed MNT 1.2 trillion to the State Budget.

Mongolia has being 100 percent dependent on petroleum products import follows; from Russia 94.5 percent, China 1.8 percent, South Korea 3.4 percent and 0.2 percent from elsewhere.

Mongolia hopes soon to stop importing petroleum products when its new oil refinery begins operation in 2021. The new plant is to be constructed using a USD 1 billion credit line from India’s ‘Export-Import’ Bank.

Last year, Mongolia was ranked 33rd from over 100 countries for its oil resources.