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Xinhua: China’s First Oil Contract with Afghanistan

Xinhua cited a report from the Russian Izvestia that China National Petroleum Corporation (CNPC) won a contract with the Afghanistan government for the development of oil blocks in the Amu Darya basin. The CNPC contract will also include construction of oil refineries in northern Afghanistan. Other bidders include companies from the United States, Britain, Australia, and Pakistan. According to the terms of the contract, CNPC will turn 70% of its profits over to Afghanistan. Xinhua reported that, according to a Russian political scientist, Kabul is seeking countries that it can rely on after the withdrawal of NATO troops. “Afghanistan does not want to give its wealth to the NATO countries which made a lot of promises, but have not done anything for the economic development of Afghanistan.” Xinhua reported that the Russian political scientist stated that India and China have filled the void.

Source: Xinhua, December 28, 2011