China and Mongolia begin oil exploration at a new field

Mongolia and China have signed a production sharing agreement for exploration at the Herlantohoy XXVIII oil block. This is the first agreement on a new oil exploration field in the last eight years.

Mongolia Foison Energy is investing $49.7 million in geological exploration, including magnetic and gravity surveys, seismic surveys, drilling of 13 wells and hydraulic fracturing. More than $575 thousand will be spent on environmental protection and land reclamation.

Exploration and basic work, including drilling and logging of wells, will be performed by the Chinese company Beijing Foyer Investment, which has experience in oil exploration.