Page 8 - AsianOil Week 38 2021

AsianOil EAST ASIA AsianOil

Elixir completes CBM well

in southern Mongolia

PROJECTS & AUSTRALIA-LISTED developer Elixir Energy which was to be spudded in the following days.
COMPANIES has completed the Richcairn-1S exploration well The company plans to sink a number of addi-
at the Nomgon IX coalbed methane (CBM) pro- tional wells in what it described as potentially “a
ject in Mongolia. very extensive coal-bearing sub-basin”.
Elixir announced on September 17 that the It added: “Future wells in this new sub-basin
well had been drilled to a depth of 792 metres, will seek to measure other key CBM characteris-
discovering 16 metres of coal and 20 metres of tics such as gas content and permeability.”
“highly” carbonaceous mudstone as determined With Elixir’s last six wells having intersected
from wireline logs. their coal targets, the company said it had
Richcairn 1S is the first of Elixir’s exploration decided to accelerate its drilling programme for
wells to intersect coal purely from seismic iden- the rest of this year by adding a third rig. As such,
tification, with the company noting that the well a second rig from drilling sub-contractor Erdene
was located in a 100-km long depocentre that Drilling is expected to be mobilised soon.
had been defined by four seismic lines. Elixir is solely focused on its 100% owned
The company said: “This demonstrates the Nomgon IX production sharing contract, which
continuous improvements in the company’s is located on the Mongolian Chinese border,
exploration programme, from the ongoing around 400-km north of China’s main gas trans-
gathering of data and the constant optimisation mission grid. The licence area covers around
of exploration tools and analysis for the specific 30,000 square km, with Elixir noting that it had
geology of the South Gobi basin.” been independently certified to contain a risked
The rig is now expected to move to a prox- recoverable prospective resource of 7.6 trillion
imate up-dip step-out location, Richcairn-2S, cubic feet (215.23bn cubic metres).™

Mongolia hit by gasoline shortages

PERFORMANCE MONGOLIAN fuel stations have had to curb Russia, meanwhile, informed Mongolia that
sales of AI-92 and AI-95 gasoline, with distrib- it would be unable to supply fuel from Septem-
utors reporting that availability has been con- ber 16 to October 1.
strained by interruptions to imports from Russia Businesses have been forced to adjust and
and China. have imposed restrictions, according to Mon-
The disruptions can be traced back to July golian Minister of Mining and Heavy Industry
30 when the Mongolian Mineral Resources and Yondon Gelen, who spoke to the media on Sep-
Petroleum Authority announced that it would tember 21.
seek to increase imports of Chinese gasoline Gelen said: “Measures are being taken to
because Russian prices had risen. address the situation. For example, our repre-
Mongolia imports all of the oil products it sentatives went to Russia. Tomorrow we will
consumes, with the Ministry of Mining and meet with a Russian supplier. We also met with
Heavy Industry noting that demand for AI-92 the Chinese ambassador to discuss the possibil-
gasoline amounts to 38,000-40,000 tonnes ity of sending a fuel wagon shipment in the near
per month. Of that, Russia has been supplying future.”
90-95% and China 5-10%. Mongolia’s dependence on oil product
While Russia is contractually obliged to pro- imports is expected to end next year, when the
vide at least 28,000 tonnes per month of the fuel, country’s first refinery project is slated to come
Russian suppliers indicated at the end of August on line,
that they would only be able to supply 17,000 The 1.5mn tonne per year refinery,
tonnes in September. which is being built in Dornogovi Province,
That prompted five Mongolian gasoline is being financed by a loan from India that
distribution companies to sign contracts with was announced during Indian Prime Min-
China to meet consumer needs. However, due ister Narendra Modi’s visit to the country in
to heavy domestic freight traffic, Chinese railway 2015. The refinery will be able to produce
officials then informed Mongolian authorities 560,000 tpy of gasoline and 670,000 tpy
that the ordered fuel could only be supplied in of diesel, along with 107,000 tpy of liquid
October. petroleum gas (LPG).™

P8 www. NEWSBASE .com Week 38 24•September•2021