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China Signed a 25-Year Deal with Afghanistan in Oil Exploration

With the departure of the U.S. invaders, the Afghan people did not live the life they expected, and were still struggling under the poverty line. The Taliban government in Afghanistan has been in power for more than a year. The results have proved that it is basically impossible to rely solely on the power of Taliban to save the Afghan economy. Looking at the whole world, it can be said that there are very few countries that are able and willing to provide assistance to Afghanistan in terms of economic construction. Atta can only focus on the big eastern countries.

China Central Asia Petroleum and Natural Gas Co., Ltd. signed a 25-year oil exploration contract with the Afghan Taliban government. According to the contract, the Chinese company and the Afghan government will jointly explore oil in the Amu Darya Basin in northern Afghanistan, where the oil reserves are estimated to exceed 80 million barrels. Chinese companies have been approved to carry out mining operations in an area of 4,500 square kilometers across the three provinces of Sar Pul, Jowzjan, and Faryab. The daily oil production will be 1,000 tons in the initial stage, and will gradually increase to 20,000 tons later. It is reported that the Chinese company in charge of the cooperation project will invest a maximum of US$150 million per year in the first three years, and will increase to US$540 million per year after three years. If the 25-year contract period is successfully fulfilled, the cumulative investment of the Chinese side will exceed US$12 billion.

Source:, January 6, 2023