The Taliban-led Afghan Ministry of Mines and Petroleum announced on June 17 the cancellation of its contract with China National Petroleum Corporation Xinjiang Central Asia Petroleum and Gas Co., Ltd. (referred to as Central Asia Petroleum, locally known as Afchin).
In 2023, the Taliban authorities signed this agreement with Central Asia Petroleum to extract oil in the Amu Darya Basin in northern Afghanistan. It was the first major public resource extraction deal signed by the Afghan government with a foreign company since the Taliban regained power in 2021. According to the agreement, Central Asia Petroleum pledged to invest $150 million in the first year and $540 million over three years. Key terms required the company to build a refinery within Afghanistan and prohibited crude oil exports.
Homayoun Afghan, spokesperson for the Afghan Ministry of Mines and Petroleum, stated that a joint committee conducted a formal investigation and found that Central Asia Petroleum repeatedly neglected contract implementation and failed to meet its obligations. He revealed that reasons for the termination included the company’s failure to invest as agreed, deficiencies in drilling and exploration at designated oil wells, lack of necessary guarantees, failure to hire Afghan nationals, and negligence in fulfilling social, environmental, and capacity-building responsibilities.
Source: Epoch Times, June 21, 2025
https://www.epochtimes.com/gb/25/6/20/n14535662.htm