Petro Matad (MATD.L) flagged further action after the "unexpected and unwelcome" decision of PetroChina to stop processing its invoices and cease oil deliveries from its Block XX in Mongolia.
PetroChina said Tuesday it was informed by the Chinese oil and gas company that the invoices will not be processed due to ongoing internal discussions despite written confirmation in August. The suspended imports from Mongolia to China, meanwhile, were attributed to the upcoming Chinese national day holidays in October.
The London-listed Mongolian oil company has escalated the issue with the office of the Mongolian Deputy Prime Minister and met with PetroChina Mongolia management to seek a definitive resolution. The company is also exploring alternative buyers and routes to market.