LONDON: Petro Matad Limited, a publicly listed Mongolian oil company, has successfully inked an Oil Sales Agreement with PetroChina Daqing Tamsag, marking a key milestone in the commercialisation of Block XX crude oil production. The agreement, finalized on April 28, 2025, covers storage, processing, transport, and export arrangements for crude oil produced from Block XX.
Under the deal, Petro Matad has submitted invoices for oil production from its Heron 1 well, spanning October 24, 2024, to March 31, 2025. Payments for this period are set to be processed during May. Moving forward, Petro Matad will submit monthly production invoices by the 10th of the following month, with payments based on Daqing crude oil benchmark prices to be issued during the last week of each month.
Custody transfer of crude oil will occur at Block XIX processing facilities, with PetroChina handling processing, transportation, and exporting operations to buyers in China.
Mike Buck, CEO of Petro Matad, expressed his satisfaction with the landmark agreement: “We are delighted to have signed the oil sales agreement for the commercialisation of Block XX production. This involved a number of firsts for Mongolia, and whilst the process was slow, we are grateful to the Mongolian authorities and PetroChina for their support. We look forward to establishing a seamless sales routine and receiving payment for the oil produced.”
The achievement underscores Petro Matad’s commitment to advancing Mongolia’s oil industry and fostering international cooperation. Payments from past production and continued crude exports mark significant steps in the company’s operational journey.