A Study On Mongolian Crude Oil Mining And Problems On Mongolian Chinese Cooperation In Crude Oil Mining Sector

Mongolian government policy is aimed at Mongolia’s mining sector, for its support,the government is relying on mineral development in other sectors. Year2010, Mongolia hasbeen registered at31st country to the list of crude oil resourced countries. Mongolian oilexploration and mining industry had been suspended for a long time.According to statistic information of Petroleum Authority of Mongolia, on2012, hasrevealed870million tons of probable reserves of crude oil, and on2013, has identified332.67million tons of proved reserves in Mongolia. Those resources shall be increase in thefuture by unexplored areas; it should be a constant good opportunity to increase Mongolianoil reserves. Although, a complete revealed proves of crude oil reserves and exploration workis going in the initial stage, but for certain country that has oil resources, it is not suited torely on imported petroleum products. The demand of petroleum products of Mongolia isgrowing about11%per annual. The most of domestic demand of petroleum products isimported from abroad.Due to the unstable petroleum products imports, crude oil received many losses andeconomic difficulties in Mongolia, such as price increases, and many factors. Based on thisdemand, Mongolia aimed to mining crude oil into the economy turnaround. The author hasanalyzed Mongolia is in urgent need to explore as soon as possible, increase exploitation, toavoid difficulties of price changes of petroleum products for Mongolia’s economy, providingfuture domestic procurement of raw materials processing conditions.Research of Mongolia’s oil resources, Mongolia deposit large reserves of oilresources are in a continuous segment of China’s large deposits. In addition, the experience ofthe global forefront of China’s oil exploration and exploitation and technology, Mongolia andChina offer some advantages for good cooperation. Therefore, to cooperate with China oilexploration and exploitation activities. For many years China is support the oil business andadvanced technologies, the strength of talent, deep experience of Chinese companies to makeMongolian oil exploration work in short time and efficiently carried into the exploitationphase, the formation of favorable conditions for economic growth. Although, Mongolia andChina have a strong cooperation in many years of experience in the sector, but the oil exploration and exploitation industry collaboration it’s still in the initial stage, it is oftendifficult. Because of that, the author choose the topic of purpose, that is a detailed study ofthese problems. This dissertation is divided into7chapters.The first chapter is introduction part, in which the author expounded the purpose ofthe study, the literature review, problems and solution, and innovation. The literature reviewpart consist of the summary of research status natural resources theory and economic growthrelation, international direct investment theory and natural resources relation, the history ofMongolian crude oil sector’s development and the current situation and characters, as well asthe main problems on Mongolian Chinese cooperation in crude oil sector.The second chapter is the history of Mongolian crude oil mining development incurrent situation and characteristics. Firstly, introduction about Mongolian petroleum sectorresearch, exploration and mining, the development of Mongolian crude oil industry after1990also about the situation of Mongolian petroleum usage and current market circumstance.In Mongolia country some regions of oil reserve there isn’t any investigate because lack oflabors and non-improving infrastructures, bad climate, weakness of organization and capitalresources. In the recent years, crude oil exploration and researches has been intensified, sothat conducting work, it revealed more oil reserves. Therefore, it is necessary to support anddevelop the exploration and mining work of Mongolian crude oil sector, reveal more oilreserves, to do that needs through activity cooperation with technology potentiate neighbor.In addition to, China is the world’s largest experienced country in oil exploration technology,as the result of developing cooperation of two countries effectively; it will be one of the bigadvantages for Mongolia.The third chapter, Mongolian crude oil mining sector development and MongolianChinese cooperation in crude oil mining sector. To introduce the base of Mongolian crude oilmining sector cause, research status of Mongolian oil exploration and mining, aboutMongolian Chinese cooperation in crude oil mining sector and the encountered issues ofSino-Mongolian cooperation in crude oil mining sector. Mongolia has started mining3oilfields. The crude oil mining operation of Mongolia increased more and more. TheMongolian Chinese economic cooperation in the neighbor. One is mineral exploration andmining industry. In recent years, petroleum and crude oil products are increasing in amountfor the foreign trade between the two countries. For a few years, Mongolia and Chinadeveloped the cooperation in crude oil exploration and mining sector was successfully.However, there encountered some difficulties. The fourth chapter, the infrastructure and investment environment of Mongoliancrude oil mining sector. The author had studied about Mongolian mining sector’sinfrastructure and infrastructure environment, Mongolian mining sector’s investmentenvironment and investment circumstance in crude oil mining. The general issues if coveringoil mining as well as mineral mining sector of Mongolia is related with infrastructure andinvestment.The fifth chapter, the legal of the oil sector of Mongolia and the implementation ofMongolian Government policy. Legal environment is the foundation of the oil sector forarrangement all issues, the author had analyzed and discussed about the legal environment ofMongolian petroleum sector and petroleum product sharing agreement issues. The investorswho invested in oil exploring and mining sector require a stable economic environment andfavorable legal environment. Otherwise, the oil sector should have a high risk on investment,to attract foreign investment, it must be the oil industry to maintain environmental stabilityand non-judicial bureaucracy. Some investors view that the environment of Mongolian oilsector is poor, the Government of Mongolia and convenience avoid preferential tax on legal,judicial environment becomes cause discomfort it.The sixth chapter, how to strengthen Mongolian Chinese cooperation in oil miningsector. The author put suggestion some ideas to further strengthening infrastructureenvironment and how to improve the investment environment, how to improve the legalenvironment in oil exploring and mining sector of Mongolia based on Mongolian Chinesecooperation in oil sector research for problem and solutionThe seventh chapter, the last part is the conclusion part, in which the author give thegeneral summary of the dissertation of the Sino-Mongolian cooperation in oil mining sectorin prospects. If Mongolia’s oil exploration and research is in rise, regardless of the risk ofChina’s large enterprises and investment environment, it can bring cooperation, not onlymakes the oil industry make Mongolia realized obvious achievements, but also to support theChinese government to resolve oil product consumption, prospect for future cooperationbetween the two countries in this field.