Historically, production, drilling and small refining operation were initially handled by Russia in the 1960's, until the communist regime collapsed. First licensing started in 1991/1992 under the Petroleum Authority of Mongolia. Earlier reviews noted that three companies announced awards in 1998 for 11 blocks, six in the South-Eastern Gobi desert, with some existing production capacity, and five in Tamsag basin in the far North-East corner, from which a small volume of crude is exported by truck, pipeline and train into China. These acquisitions involved SOCO International, Gulf Canada Resources and Mantaur Petroleum Corp.

During 2000 SOCO commenced drilling of four wells on Contract Area, the company made three discoveries with 19-9, 10 and 12 and dry hole on 19-11. Well 19-10 tested a new structure north of 1997's 19-3 discovery. SOCO works with Huabei Oilfield Services of China, which provides drilling services and can elect to participate in Area 19 after the second four-well drilling program is completed this year on Area 19-13 and 21; 2D/3D seismic has been conducted over Areas 21/22 in preparation for this drilling. Petrovietnam holds 5% in each of Soco's PSC's. Area 20 (1997) was relinquished after drilling one well. SOCO's net production to it's working interest in early 2001 was 9,450 bopd. Some crude is trucked to a pipeline at Refinery in the Inner Autonomous Region of China.