September 22, 2014

Oil extraction started in Amu Darya in northern Afghanistan

By Sayed Jawad - Sun Oct 21 2012, 7:15 pm

China’s National Petroleum Corporation started oil extraction process in northern Afghanistan at Amu Darya basin, Afghan mines ministry officials said on Sunday.

The oil extraction contract was signed between the Afghan government and National Petroleum Corp (CNPC) last December which will be valied for a period of 25 years that will cover drilling and a planned refinery in the northern provinces of Faryab and Sar-e-Pul. It is the first major oil production in the country.

Wahidullah Shahrani Afghan Mines Minister quoted by Reuters said, “The company will extract 1,950 barrels per day, which will crucially help Afghanistan towards self-sustainability and economic independence.”

Hundreds of millions of dollars have been invested by China’s CNPC along with the other venture working on Amu River oil basin which will produce billions of dollars over the next two decades – CNPC will pay a 15 percent royalty on oil, 20 percent corporate tax and give 50-70 percent of its profit from the project to the government.

From January 1, CNPC will extract 1.5 million barrels of oil annually, Shahrani said. Up to 87 million barrels of crude are estimated to be in Amu Darya.

This comes as extraction of oil deposit in northern Sar-e-Pul province of Afghanistan was formally started on Sunday, 24 of June this year.

Afghanistan’s mineral deposits may worth 3 trillion U.S. dollars and the government would utilize it for economic development, according to Afghan mining officials.

Follow Khaama Press (KP) | Afghan News Agency on Twitter, become a fan on Facebook. Stay updated via RSS

Leave a Reply

Current ye@r *

Advertisement