China will extract oil in Taliban Afghanistan
6.01.2023 - 14:30
The Taliban-led government of Afghanistan will sign a contract with a Chinese company to produce oil in the Amu Darya basin in the north of the country.
An oil production contract will be signed with Xinjiang Central Asia Petroleum and Gas Co (CAPEIC) for 25 years. This will be the first major agreement on the extraction of raw materials that the Taliban-led administration of Afghanistan signed with a foreign company since coming to power in 2021, writes Ukrinform with reference to Reuters.
It should be noted that China has not officially recognized the power of the Taliban, but has significant interests in the country. Afghanistan is at the heart of a region important to China’s Belt and Road infrastructure initiative.
According to the contract, the Chinese company will invest 150 million dollars in Afghanistan every year. Investments are expected to reach $540 million in three years. It is envisaged that the Taliban administration will have a 20% partnership in the project, with the possibility of increasing the share to 75%. One of the terms of the agreement is that the oil will be processed in Afghanistan.
Read also: Qatar signed a 27-year agreement on the supply of LNG to China.
