ULAANBAATAR — Mongolia is taking steps to strengthen the security of oil exploration and production activities as the government seeks to increase domestic energy supplies and reduce dependence on imported fuel

Prime Minister N. Uchral has instructed the relevant ministries to place oil exploration and production operations under the protection of the country’s Internal Troops. The proposal is expected to be formally presented to the government for implementation.

The government says stable oil exploration and production are important for protecting investors and ensuring that projects can operate in accordance with the law.

Mongolia currently spends billions of dollars on imported fuel, creating significant pressure on the country’s economy and energy security. The government wants to reduce this dependence by developing domestic petroleum resources.

Officials have also linked the policy to the country’s planned oil-refining capacity. Ensuring a reliable domestic supply of crude oil could help support refinery operations and reduce exposure to fluctuations in international fuel markets.

The government has stressed that investors involved in legitimate exploration and extraction projects should receive protection and predictable operating conditions.

The latest decision comes as Mongolia faces wider challenges involving fuel availability, prices and supply security.

Authorities are simultaneously working on measures aimed at strengthening the national budget and protecting households from rising living costs. The government’s proposed 2026 budget revision includes additional support for pensions, public-sector salaries, food reserves and energy costs.

The government has proposed allocating funds to build larger reserves of meat, wheat, potatoes and vegetables, while also planning measures to reduce the impact of higher imported electricity costs on households.

Energy security has become an increasingly important policy issue for Mongolia because the country remains exposed to external fuel and energy supplies.

By strengthening domestic oil exploration, authorities hope to create a more secure foundation for future fuel production and economic development.

The government is also seeking to attract and retain investors in the natural-resource sector, making security and stable operating conditions a central part of its approach.

The latest move signals that Mongolia views domestic petroleum development not only as an economic opportunity but also as an issue connected to national and economic security.