Afghanistan aims to extract 150,000 barrels fuel this year
By Sajad - Thu Sep 06 2012, 7:31 pm
This comes as a number of Afghan lawmakers and local media agencies criticized that the fuel refinery was not in the exraction contract signed between Afghanistan and National Petroleum Corporation of China and that the extracted fuel would be refined in China.
However Wais Sherdil chief of the Amu River Fuel Deposits in the ministry of mines of Afghanistan told reporters on Thursday that the Amu River fuel will be refined inside Afghanistan.
Mr. Sherdil further added the fuel refinery wil be constructed in northern Afghanistan and around $250m to $350m will be spent for the construction project.
He said the main reason behind the delay in the construction work of the refinery system was the determination of the the amount of fuel that will be refined in this fuel refinery.
The extraction of fuel deposits in Amu River has been awarded to China National Petroleum Corporation and a local company “Watan”.
Major fuel deposits of Afghanistan are located in Amu River basin which includes northern Sar-e-Pul, Jowzjan and Faryab provinces of Afghanistan, out of which the extraction has already started in five locations.
According to Afghan mines ministry officials the five locations in Sar-e-Pul and Jowzjan proivnces of Afghanistan, on which the extraction work has already started contains around 87 million barrels of fuel which is around 20% of the fuel deposits in Amu River basin.
Mr. Sherdil said we are expecting to extract 150 thousand barrels of fuel this year as it was agreed in the contract with the extraction companies.
The extraction project was awarded to China National Petroleum and local Watan Company for 25 years however the contract will be renewed after every five years.
Wais Sherdil said the two companies are due to invest $400 million to $500 million for the setup of extraction installations during the first five years.
Afghan mines ministry officials also said the extraction work of Amu River fuel is in progress according the plans which were already prepared.
Sherdil said the extraction work of the two companies will be monitored closely to prevent any shortage or violation while extracting fuel.