- TMK Energy (TMK) signs a memorandum of understanding with PetroChina Daqing Tamsag (DATAMO) to advance the development of the Gurvantes XXXV CSG project in Mongolia
- The overarching aim of the partnership is to develop the project and the Mongolian gas industry to provide a cleaner source of energy within Mongolia
- The agreement may also see DATAMO invest in the Gurvantes project with terms that are yet to be agreed upon
- The MoU will expire after six months and either party may terminate the deal by giving writing notice of 30 days
- TMK shares are up 25 per cent and trading a 1.25 cents at 11:24 am AEST.
TMK Energy (TMK) has signed a memorandum of understanding (MoU) with PetroChina Daqing Tamsag (DATAMO) to advance the development of the Gurvantes XXXV CSG project in Mongolia.
Wholly owned by Chinese gas giant PetroChina, DATAMO owns and operates two petroleum blocks in the Dornod province of Mongolia. It currently produces the majority of the oil produced in Mongolia, most of which gets exported as crude oil to China.
Under today’s binding deal, the TMK and DATAMO will work together on a non-exclusive basis to accelerate the exploration, evaluation and development of the Gurvantes XXXV coal seam gas (CSG) project.
DATAMO and TMK said they considered this to be an important partnership to responsibly develop the project and provide Mongolians with a cleaner source of energy while supporting the gas industry in Mongolia.
The agreement may also see DATAMO invest in the Gurvantes XXXV CSG project with terms that are yet to be agreed upon.
“Being able to introduce a subsidiary of PetroChina to the project at such an early stage is extremely encouraging and a validation of the excellent technical results we have had to date and talks to the quality and size of the overall project,” TMK CEO Brendan Stats said.
“We are very confident that this new relationship will continue to grow and more definitive agreements can be entered into as this process evolves.”
The MoU will expire after six months and either party may terminate the deal by giving writing notice of 30 days.
TMK shares were up 25 per cent and trading a 1.25 cents at 11:24 am AEST.