Taliban Sign Oil Extraction Deal with China

Taliban Sign Oil Extraction Deal with China

Date:

In their first international contract since taking over Afghanistan, the Taliban has signed a 25 year deal with China’s state-owned Xinjiang Central Asia Petroleum and Gas Company to pump oil in the Amu Sea basin. 

Taliban Spokesman Zabihullah Mujahid stated that “According to this contract, oil will be extracted from an area of 4500 square kilometers, which covers Sarpul, Jawzjan and Faryab in the northern provinces. The daily rate of oil extraction will be from 1,000 to 23,000 tons.”

“This company will invest up to 150 million dollars a year, which will increase to 540 million dollars in 3 years. According to the contract, the Islamic Emirate will be a 20 percent partner, and this share and amount will increase up to 75 percent. 3000 Afghans will be employed in this project,” he added.

While signing the deal, Chinese Ambassador to Kabul Wang Yu stated that “The Amu Darya oil contract is an important project between China and Afghanistan”

“[China] respects the independence choice made by the Afghan people and respects the religious beliefs and national customs of Afghanistan,” You said, adding that “China never interfered in Afghanistan’s internal affairs, never seeks self-interest for the so-called spheres of influence in Afghanistan.”

This development comes as the Taliban expressed interest in creating a trade route with China and connecting Afghanistan to the One Belt One Road Initiative (BRI), which Taliban  deputy Minister of Economy Abdul Latif Nazari noted that “The connection of Afghanistan with the One Belt One Road initiatives or Silk Road benefits Afghan stability and development.”

Since the withdrawal of international forces and the Taliban takeover in August 2021, China has sought to tap into Afghanistan’s economic potential, laying the foundation for Belt and Road Initiative (BRI) expansion into the country through trade and investments, as well as exploiting the vast natural resources the country has to offer, such as oil, gas, copper, gold, lithium, and other rare earth metals, which are worth an estimated $1 trillion.

This August, an array of meetings was held in Kabul between Taliban and Chinese officials to expand economic and diplomatic cooperation. The most prominent was that of China’s Special Envoy for Afghan Affairs, Yue Xiaoyong, meeting with Amir Khan Muttaqi, the acting Taliban Minister of Foreign Affairs. The two stressed economic development, with the IEA’s Arg Palace Twitter account tweeting that Xiaoyong said “China wants good governance in Afghanistan, Chinese investors and companies will be encouraged to invest in Afghanistan. Visas are given to Afghan businessmen, Chinese flights to Afghanistan are starting and we want to increase Chinese imports to Afghanistan.”

Atlas
Atlashttp://theatlasnews.co
Unbiased & Unfiltered News Reporting for 12+ years. Covering Geo-Political conflicts, wartime events, and vital Breaking News from around the world. Editor-In-Chief of Atlas News.
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