The Afghan administration announced a deal with China's Xinjiang Central Asia Petroleum and Gas Co (CAPEIC) on Thursday that will enable oil extraction in the Amu Darya basin in northern Afghanistan
MOSCOW (Pakistan Point News / Sputnik - 05th January, 2023) The Afghan administration announced a deal with China's Xinjiang Central Asia Petroleum and Gas Co (CAPEIC) on Thursday that will enable oil extraction in the Amu Darya basin in northern Afghanistan.
Abdul Ghani Baradar, the acting deputy prime minister for economic affairs in the Afghan government run by the Taliban (under UN sanctions for terrorism), said the contract would bolster Afghanistan's economy and assert its independence. Afghanistan sits on some 1.8 billion barrels of untapped crude, according to the Taliban's estimates.
"The contractor will invest up to $150 million a year, which will increase to $540 million in three years," a statement published on the minister's social media account read.
Oil will be produced in the northern provinces of Faryab, Jowzjan and Sar-e Pol, starting with 1,000 tonnes a day. The Taliban-run administration will initially have a 20% stake in the project, which will be gradually increased to 75% to match the rising output. The Taliban expect 3,000 jobs to be created.
Baradar said the administration of ousted President Ashraf Ghanihad signed a contract for oil extraction with another Chinese company but it had been suspended. The new contract allows for it to be terminated automatically if CAPEIC fails to meet its material obligations within a year.