CNPC wins Afghan oil extraction contract: Reports
By Ghanizada - Tue Sep 06 2011, 12:08 pm
Tuesday, September 06, 2011 – According to reports, following a significant competition, China National Petroleum Corporation has beaten its competitors to win a bid to develop three blocks in Afghanistan’s Amu Darya basin, the first project to be tendered internationally in four decades.
Jalil jumriany, a governmental official quoted by the Financial Times said, CNPC was the highest bidder for the Kashkari, Bazarkhami and Zamarudsay blocks, in the nation’s north.
According to reports, CNPC would part with 15% of its per barrel oil price in exchange for the exploration and development rights over the contract, as well as paying 30% of its profits as company tax.
Meanwhile, one of the rivals of the China National Petroleum Corporation Tethys Petroleum, a London-listed company said, it was unable to match the offer.
Tethys Petroleum officials said, “As a commercial oil and gas company Tethys could not offer the same terms as CNPC which, in Tethys’ view, would make the project non¿commercial.”
According to officials in Ministry of Mines of Afghanistan, only 30 days have been provided from 12 September to finalize the contract with CNPC, or else the government would negotiate with its alternative choice, which is more likely going to Australia’s Buccaneer Energy.
According to reports, due to discovery of historical relics at the site, production at the site is not expected to start before 2014.
According to a UK newspaper, the Independent the relics would be moved before the production starts.
Production at the site is not expected to start until the end of 2014 after the discovery of historical relics at the site, with UK newspaper the Independent reporting that they would be moved