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Survey of Energy Resources 2007

Oil Shale Country Notes

Mongolia

Mongolia possesses large mineral deposits which, owing to the country's political isolation during most of the 20th century, remain largely undeveloped. Some mining operations were established prior to 1989 with the help of the Soviet Union and Eastern European countries but following the breakup of the USSR, Mongolia's move to a free economy and the Minerals Law being passed in 1997, the potential is being recognised.

Numbered amongst the indigenous minerals are oil shale deposits from the Lower Cretaceous Dsunbayan Group, located in the east of the country. Exploration and investigation of the deposits began as long ago as 1930 but it was only during the 1990s and with the help of Japanese organisations that detailed analyses began. Twenty six deposits were studied and found to be associated with coal measures. Historically, Mongolia's coal has been mined as a source of energy, with the shale being left untouched. However, the study ascertained that the oil shales are 'excellent' potential petroleum source rocks, particularly the Eidemt deposit.

During 2004, Narantuul Trade Company, the owner of the Eidemt deposit was investigating the possibilities of developing the field's potential with the aid of international cooperation.

It was reported in late-2006 that China University of Petroleum had signed a contract to undertake a feasibility study on the Khoot oil shale deposit.