Taliban announces first auction of oil produced in Afghanistan

The first auction of oil produced in Afghanistan took place in Kabul, Report informs referring to Interfax.

A tender for the sale of 20,000 tons of Kashgar oil and 7,000 tons of Angut oil was held on March 7 in the presence of Acting Minister of Mining and Oil Shahabuddin Delawar. It is noted that the auction took place in the building of the ministry itself in Kabul.

On January 5, the Taliban minister and a representative of the Chinese oil and gas company CAPEIC signed a contract to develop oil fields in the north of the country.

The expected volumes of oil production are indicated with a gradual increase from 1,000 to 23,000 tons per day. It was negotiated that China’s investment would be between $150 million and $540 million in three years. The duration of exploration work is envisaged for three years. The extracted oil will have to be processed in Afghanistan.

Afghanistan will be a partner in this project with a participation share of 20% with a further gradual increase to 75%. The term of the contract is 25 years. This contract was the first international investment contract since the Taliban came to power in Afghanistan.