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Petroleum Law of 1991.

Country/Territory
Mongolia
Document type
Legislation
Date
1991 (2001)
Source
FAO, FAOLEX
Subject
Energy, Mineral resources
Keyword
Oil Royalties/fees Mining Exploration Authorization/permit
Geographical area
Asia, Asia and the Pacific, Eastern Asia, Landlocked Developing Nations
Entry into force notes
Entry into force from the 13th of February 1991.
Abstract

The purpose of this Law is to regulate the operations of Mongolian and foreign entities or individuals involved in the exploration of and the protection, transportation, storage and marketing of petroleum originating in Mongolia. All petroleum occurring under the surface of the earth in MPR shall belong to the state. Petroleum related operations within the territory of Mongolia shall be carried out only in accordance with the permissions issued by the Central Administrative Authority in charge of petroleum. The MPR Government may decide to prohibit or restrict production of petroleum in any part of its territory for reasons of national security or to prevent damage to natural oil reserves, the population, or to protect relics of historical and cultural importance. The document consists of III Chapters that contain 15 Articles. Chapter I (arts. 1-5) lays down general provisions. Article 1 declares the purpose of the Law. Article 2 gives definitions of the main concepts. Article 3 deals with ownership of petroleum. Article 4 regards state management of petroleum operations. Article 5 establishes status of foreign contractors. Chapter II (Arts.6-11) regards petroleum operations. Article 6 establishes basic requirements of petroleum contracts. Article 7 regards grant of tenure to contractors. Article 8 regards term of contractors’ operations. Article 9 deals with royalties, taxes, levied on contractors. Article 10 regards production-sharing. Article 11 regards cost recovery. Chapter III (Arts.13-15) deals with arbitration and liabilities. Article 13 regards arbitration clause. Article 14 establishes liabilities. Article 15 regards entry into force.

Full text
English

References - Legislation

Implemented by

Regulation for implementing the Petroleum Law of the Mongolian People’s Republic.

Legislation | Mongolia

Keyword: Oil, Royalties/fees, Mining, Exploration, Authorization/permit

Source: FAO, FAOLEX