January 29, 2023

Oil Extraction Contract from Amo River Inked with Chinese Company (CPEIC)

Oil Extraction Contract from Amo River Inked with Chinese Company (CPEIC)

KABUL, Jan. 05 – Minister of Petroleam and minerals of the IEA, Mawlawi Shahbuddin Delawar signed with a Chinese company (CPEIC) for the extraction of oil in the Amo River basin in presence of Chinese ambassador to Kabul Wang yu, today.

According to the contract, oil will be extracted from an area of ​​4500 square meters, covering Sarpul, Jawzjan and Faryab provinces in the notelet.

The rate of oil extraction will be from 1,000 to 23,000 tons per day. 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 have a 20 percent share which will increase up to 75 percent.

3000 Afghans will be employed in this project. A very important clause in the contract with the Chinese company (CPEIC) is that if the said company does not fulfill all the materials and resources promised in the contract within one year, the contract will be automatically canceled.

The total duration of this contract will be 25 years.

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