Mongolia produces crude oil while it imports refined petroleum. In doing so she spends roughly $1.5 billion annually for buying petroleum and lubricated materials. Henceforth, decision to build up oil refinery should help reduce, if not eradicate, such kind of dual dependence. It would also give her ample opportunity to reallocate much needed foreign exchanges for other acute needs. Moreover, hundreds of new job places would reduce unemployment and poverty too.

The decision has been ratified by the Parliament and enthusiastically endorsed by the Government of India. With that issues of location, modality and timing to take maximum benefit of LoC have actually turned into a stage of realization of project documents augmented by law and relevant regulations of the two countries.

Thus, as a nodal agency fledgling but vibrant public company with a title of Mongolian Refinery (MR) has been formed up accordingly. With direct involvement of EXIM Bank of India tendering has been announced among the Indian companies with big names in hydrocarbon sector. The Engineers India Limited (EIL) has been selected as consultant to develop preliminary feasibility studies report. By the way EIL is over 50 years young, one of the icons in engineering consultant for oil sector with enormous national and international experience. It has numerous feathers to its hat including over five thousand assignments consisting of four hundred major projects valued at capex of more than $200 bln. Their partnering is gearing to carry forward this pivotally important mission.

Having had their terms and condition scrutinized they are now at concluding phase for making finishing touches on the project documents. So as basic and detailed project technical reports finalized to be reviewed by bodies like Mineral resource and Science and technological councils by the Ministry of Heavy Industry and Mine coincided by construction of local infrastructures like high ways, railways and electricity grid that will be commissioned by June, 2019.