Petro Matad’s assets are located in remote frontier locations in Mongolia. In this operating environment, it is essential to have a fit for purpose environmental strategy that cultivates and implements an environmental awareness culture not only within the company but also the communities where we work and the contractors involved with our projects and activities.
The preservation and protection of the environment where we operate is a top priority for us.
Commitment to Environment
We address environmental protection proactively in all our operations. Within our Environmental Management Plan, we implement site monitoring prior to the commencement of any field programmes and apply the recommendations of the Detailed Environmental Impact Assessment which must be approved by the Ministry of Environment prior to any operational activity.
Detailed environmental and cultural sensitivity field studies by specialist consultants have been commissioned in our areas of operations to address the concerns of local communities, to ensure legal compliance when working near protected areas and to minimize all adverse environmental impacts.
The results of these studies are used to finalize the operational Environmental Management Plan which includes interactive constraint maps. In areas of potential sensitivity, sites are revisited and surveyed to manage any potential environmental, archaeological or cultural conflicts. These visits involve environmental and cultural specialists, together with local environmental officials and a senior member of our technical team. We strive to remediate all operational areas wherever necessary.
We continue to review new technologies that will reduce our overall operational carbon footprint which will improve both operational performance and reduce potential harmful emissions into land, water and air. We also pay close attention to the training of employees and contractors, to recycling and waste management, spill prevention, water source management and environmental restoration.
An Environmental Implementation Report is required to be submitted at year-end which serves as a record of implemented environmental protection measures, mitigation strategies, and monitoring activities specified in our Environmental Management Plan and Detailed Environmental Impact Assessment. The report typically includes data and documentation on environmental monitoring results, waste and emissions management, rehabilitation progress, compliance with regulatory conditions, and any incidents or deviations from the plan. It aims to ensure transparency and accountability to both local authorities and the Ministry of Environment, demonstrating effective management of the environment. We are pleased to report that the Dornod Aimag Environment Committee awarded Petro Matad an overall score of 97% for operational year 2024, which is the highest score ever granted to any company operating in Dornod Aimag.
We continue to review new technologies that will reduce our overall operational carbon footprint which will improve operational performance and reduce potential harmful emissions into land, water and air. As an example, the environmental department is reviewing with various experts a more environmentally sustainable methods for neutralizing and processing drill cuttings with the aim to institute better remediation of mud sumps than is currently performed in Mongolia.
We also place strong emphasis on the training of employees and contractors, recycling and waste management, spill prevention, water source management and environmental restoration.
One Billion Tree Campaign
As part of the President of Mongolia’s One Billion Tree Campaign, the company has contributed to national reforestation efforts in the communities where it has operated in the past 5 years. In 2024, Petro Matad planted 500 tree saplings in Matad Soum in close collaboration with local residents, whose participation was crucial for site preparation, planting, and initial watering activities. Their involvement not only fostered a sense of community ownership but also encouraged environmental stewardship at the grassroots level.
The planting site was selected in consultation with the Matad Soum Governor’s Office to ensure it aligned with local land use priorities and community development plans. In collaboration with local forestry experts, native and drought-resistant species were chosen to enhance survival rates and ensure ecological compatibility with the region’s steppe and semi-arid conditions.
The company is dedicated to monitoring the growth and survival of the saplings through regular site visits and maintenance efforts, in partnership with the Matad Soum administration. Additional tree-planting phases are being considered in other areas of Block XX, reinforcing the company’s long-term commitment to environmental sustainability.
Environmental Offset Plan
The Environmental Offset Plan, also known as the Compensatory Protection Plan, is a mandatory component of the Detailed Environmental Impact Assessment in Mongolia. Its primary aim is to address any residual environmental impacts, especially on biodiversity and ecosystems—that cannot be entirely avoided, minimized, or restored through direct mitigation measures. Offset plans consist of a structured package of actions undertaken annually outside the immediate project footprint. In collaboration with the Environmental Department of Dornod Aimag, it was agreed that for the year 2024, an appropriate compensatory measure is to procure firefighting equipment for the province center and Matad Soum. This included personal protective firefighting gear, water tanks, trailers, and wind-powered extinguishers. Dornod region, which is mostly a steppe with large areas of growth, is often prone to wildfires. This initiative strengthens regional environmental resilience and enhances local emergency response capacity.
Air Quality
The nature of the company’s activities has the potential to pollute the atmosphere, which underscores the importance of controlling and reducing emissions to avoid and minimize the potential damaging effects on the environment and human health. Efforts are made to ensure machinery and equipment are stringently serviced and maintained to reduce pollutants. Transportation and logistical plans are constantly reviewed to reduce carbon emissions.
Environmental Activity
The Board of Petro Matad in 2021 took the decision to expand the company’s activities in Mongolia into sustainable and renewable energy in addition to its ongoing work in the oil and gas sector. Mongolia has a substantial potential for both wind and solar power generation. A joint venture called SunSteppe Renewable Energy was established with an active and successful Mongolian renewable energy project developer.
A number of projects have been identified ranging in size from a few tens of megawatts to hundreds of megawatts and are being developed to construction ready status.
Petro Matad is also studying the potential to use CO2 injection as an enhanced oil recovery mechanism for the Heron development. This technique has been widely used around the world for many years and has proven particularly successful in some of the larger oil field developments onshore in northern China. It has not been deployed in Mongolia where water injection has traditionally been used for reservoir pressure maintenance. Southern Mongolia is effectively covered by desert steppe and water is an increasingly precious resource. As such, an alternative to large scale water usage in oil production operations is considered a goal worth pursuing. Technical studies are now underway to determine the potential effectiveness of CO2 injection into the reservoirs of the Tamsag Basin.
See our Environmental, Social and Corporate Governance Initiatives page for a full list of social outreach and environmental activities.