UK-based Petro Matad, which operates the Heron oil field in Mongolia (Mongolian name “Tseng Togoruu”), has started selling oil, realising reserves produced from October 2024 to May 2025, the company said in a statement.
The oil was sold to PetroChina Daqing Tamsag (a “daughter” of Daqing Oil Field, part of China National Petroleum Corporation, CNPC) in a deal struck between the parties in April. It is specified that the gross proceeds from the sale were $1.18 million, representing 70 per cent of the total amount.
“RetroChina withheld 30% of the amount pending confirmation from Mongolia’s tax authorities that the company would not be charged customs duties, VAT or other tax levies as an oil refiner and transporter. After royalties and the government’s share of revenue, Petro Matad’s net profit from this payment is $0.81 million,” the statement said.
In early March, Petro Matad announced its readiness to start selling oil from the Tsen Togoruu field and its intention to sign an agreement with one of the partners. The company is ready to transport oil for sale either by its own forces or through an operator.
In addition, Petro Matad also announced that it is looking for a partner to participate in the development of Tseng Togoruu and the rest of the Matad-XX exploration area (which includes the field itself) to ensure increased capital investment in the project to drill new wells and accelerate production. As of early March, the field had produced 25,000 barrels of oil since the start of operations. Up-to-date data is not given.
PetroChina Daqing Tamsag has been exploring and producing oil from fields in Dornod aimag in the far east of Mongolia since 2005, along with fields under an agreement between the company and the Mongolian government; 60 per cent of the oil that PetroChina Daqing Tamsag produces goes to China.
The Tseng Togoruu oil field is the first oil field in Mongolia. The Matad-XX exploration area, which includes the field, covers an area of 214 square kilometres. Oil production at Tsengotogoruu started at the end of October 2024.
In January, the company also stated that, according to estimates, the oil that was already in storage (at that time – in the amount of 16 thousand barrels), at current market prices will bring Petro Matad a net profit of about $600 thousand. In addition, the company is also considering the possibility of modernising the infrastructure of the field, which produces oil, in order to capture and further use the associated gas produced along with oil.
Petro Matad is a British company headquartered in Ulaanbaatar. It is Mongolia’s main hydrocarbon exploration and production company. Petro Matad’s main asset is the Tseng Togoruu field. The company also specialises in the transportation of electricity from hydrocarbons and renewable energy sources.
According to the preliminary estimates of the company, the oil reserves at the field were estimated at 194 million barrels, and the produced oil – from 33 million to 60 million barrels. It was planned that at the peak of development the field would bring up to 9 thousand barrels of oil per day. Now the production volume is 160-200 barrels per day.