Minister of Mongolia Explains to the Media About Tax Issues of Chinese-funded Oil Companies

Minister of Industry and Mineral Resources of Mongolia Provides Information to the Media on Chinese Enterprises

Mongolia News Agency, Ulaanbaatar, January 26th, the Department of Economic Development recently held a "Mining Week" event at its affiliated Center for Protection of Investors' Rights.

During this event, the minister provided information to the media regarding the issue related to the "PetroChina Daqing Tamsag Basin Co., Ltd." operating in Block XIX and Block XXI of the Tamtsag Basin in the East Province and the Tamsag XXI block for oil operations.

Looking back at this issue, the State Taxation Administration made a tax audit decision of 43.6 billion tugriks in 2024, and the state audit institution separately determined an additional payment of 6.65 billion tugriks. In addition, the leadership of "PetroChina Daqing Tamsag Basin Co., Ltd." had not previously acknowledged the issue related to the mineral resources usage fee.

Regarding the subsequent solutions to these issues, the Minister of Industry and Mineral Resources, Gombodorj Dammaringma, visited China last week and held talks with the company's investors.

He stated in this regard, "The company engaged in the largest scale of oil exploration and production activities in Mongolia is 'PetroChina Daqing Tamsag Basin Co., Ltd.'. I have held talks with the chairman and vice president of the company's board of directors and reached a consensus on how to resolve the disputes between both sides caused by the application of legal retroactivity as well as discrepancies and misuses."

At the same time, both sides also reached an agreement to increase the intensity of exploration and production, and to supply raw materials for the oil refinery under construction in Altanshilee County, Eastern Gobi Province, and established a joint working group. A specific solution will be released soon.

In addition, both sides reached a consensus on increasing the import of petroleum products from neighboring countries, implementing quota management, obtaining petroleum products at competitive prices, and other regulatory plans, and will sign long-term contracts for continuous cooperation.

Original article: toutiao.com/article/1855384788050953/

Statement: This article represents the views of the author himself.