Petroleum draft bill not passed

Petroleum draft bill not passed


Thursday`s (14th May 2014) plenary session meeting of Parliament settled the final discussion on a new revision into the Petroleum law of Mongolia, the Petroleum law manual, and other amendment bills. However, the new revision into the Petroleum law of Mongolia was not passed as 50 percent of MPs who attended rejected it, claiming the revision did not need to be passed. The Petroleum draft bill was also not passed due to poor attendance of MPs in the plenary session meeting. At the plenary session meeting most members of MPRP-MNDP Justice coalition were absent, in particular the cabinet ministers of the ruling party and MPs. The new revision to the law details that a stability agreement would be effective when a production-sharing agreement is signed. The Government, as the owner of the mineral resources, and a foreign oil company, as a contractor to provide technical and financial services for exploration and development operations, would share 50-50 percent of the profit of the production. It also states that after the cost recovery, the government would acquire 60 percent of the stipulated share. Source: www.news.mn

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