At the regular Cabinet meeting held on May 16, 2012 it has been resolved to establish oil producing "Dornod Oil" company with a state-owned participation no less than 34% in Choibalsan, the center of Dornod
The Cabinet laid duties upon the State Property Committee to select entities that will own the rest of the shares of the company, according to the law on Concession, and to adopt the company's rules.
As for partake of financing, the Government’s capital investment for the project to build the oil factory
is to be allocated from additional funding of the Development Bank according to the product share agreement.
With the establishment of the “Dornod Oil” company, Mongolia will be enabled to domestically supply particular portions of its oil consumption
at national and regional levels.