AFGHAN TALIBAN, CHINA SIGN OIL EXTRACTION DEAL

Fri 06 January 2023:

In an effort to boost revenue, the Taliban-led government in Afghanistan inked its first foreign deal on Thursday to extract oil from the northern Amu Darya basin.

In a ceremony held in the capital Kabul on Thursday, acting Minister of Mines and Petroleum Sheikh Shahabuddin Delawar and a representative of the Xinjiang Central Asia Oil and Gas Company inked the first significant foreign investment agreement since the Taliban took control of Kabul in 2021.

The signing event was also seen by Chinese Ambassador Wang Yu to Afghanistan and Acting Deputy Prime Minister Mullah Abdul Ghani Baradar Akhund.

“Recently, several projects were approved by the Economic Commission, and with their undertaking, fundamental steps will be taken for the prosperity of the country and public welfare,” state-run Bakhtar News Agency quoted Baradar as saying.

“We request that the company continue the procedure in accordance with international standards and in the best interests of the people of Sar-e Pul (northern province in Afghanistan),” he added.

Speaking on the occasion, Sheikh Shahabuddin Delawar said under the deal the Chinese company will be extracting oil from an area covering 4,500 square kilometers (1,737 square miles) collectively in northern Sar-e-Pul, Jawzjan, and Faryab provinces.

“Over 3,000 local people will get jobs in this project,” he said.

Delawar said 200 tons of oil would be extracted initially daily and the quantity would gradually increase to 1,000 tons a day.

Speaking on the occasion, the Chinese envoy called the deal important for the economic growth of the war-torn country and a positive step towards close relations between Kabul and Beijing.

According to the contract, the Chinese firm will invest up to $150 million a year, which will increase to $540 million in three years. “The project directly provides job opportunities for 3,000 Afghans,” the statement said.

Afghanistan is estimated to be sitting on untapped resources of more than $1 trillion, which has attracted the interest of some foreign investors, according to Bakhtar News Agency.

While no country has officially recognized the Taliban, China has substantial investment in the region. Afghanistan is in desperate need to boost its economy and since the Taliban’s return to power, international funding has remained largely frozen.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

___________________________________________________________________________________________________________________________________

FOLLOW INDEPENDENT PRESS:

TWITTER (CLICK HERE)
https://twitter.com/IpIndependent