Chinese Firm Signs Deal With Taliban to Produce Oil in Afghanistan
(Bloomberg) -- The Taliban-led administration in Afghanistan signed its first international contract Thursday to extract oil from the northern Amu Darya basin as the beleaguered group seeks to increase revenue.
The agreement with a subsidiary of China National Petroleum Corporation, was inked in Kabul in the presence of Chinese Ambassador to Afghanistan, Wang Yu, and the Taliban’s Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar
The pact will “strengthen Afghanistan’s economy and increase its level of oil independence,” Baradar said at the signing. Wang, whose country does not recognize the Taliban government, said the 25-year contract will support Afghanistan’s push for self-sufficiency.
Xinjiang Central Asia Petroleum and Gas Co. will invest as much as $150 million in the first year and $540 million over the subsequent three years to explore five oil and gas blocks, said Shahabuddin Delawar, the acting minister of mines and petroleum. The blocks are located in a 4,500-square-kilometer (1,737.5 square mile) area in northern Afghanistan.
The militant group will earn 15% royalty fees from the 25-year contract. Daily oil production will start at 200 tons and gradually rise to 1,000 tons. The five blocks are estimated to hold 87 million barrels of crude oil, according to a previous survey.
Americans are going to start malding again.