Afghanistan signs oil development deal with China (Iraq, enemies, spokesman)
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KABUL – Afghanistan’s cabinet cleared the way for the war-torn state to sign a deal with China National Petroleum Corp (CNPC) for the development of oil blocks in the Amu Darya basin, the Afghan president’s office said on Monday.
The deal covering drilling and a refinery in the northern provinces of Sar-e Pul and Faryab will be the first international oil production agreement entered into by the Afghan government for several decades.
It marks the second major deal for China in Afghanistan after Metallurgical Corp of China signed a contract in 2008 to develop the huge Aynak copper mine south of Kabul, which is due to start producing by the end of 2014.
“The Afghan cabinet has ordered Mines Minister Wahidullah Shahrani to sign an oil exploration contract for Amu Darya with China National Petroleum Corporation,” the statement said.
Jawad Omar, a spokesman for the mines ministry, said the contract would be signed on Wednesday.
State-owned CNPC and joint venture partner Watan Group — a diversified Afghan company — will explore for oil in three fields in the basin – Kashkari, Bazarkhami and Zamarudsay, which are estimated to hold around 87 million barrels of oil.
Under the contract, CNPC will agree to pay a 15% royalty on oil, a 20% corporate tax and give up to 70% of its profit from the project to the Afghan government.
The mines ministry said in October that the deal was likely to result in government revenues of US$5-billion over the next 10 years.
Indian and Chinese bidders have been front-runners for deals to develop Afghanistan’s vast mineral deposits, which are valued at US $3-trillion, worrying Western firms that have hesitated to invest in the country due to security concerns.
Experts have warned that mining projects in Afghanistan are likely targets for insurgents, that production and transport costs will be high and that sovereign risk is a serious concern.
But China and India, where demand for energy and industrial inputs is booming, are willing to take risks to secure supplies. https://www.city-data.com/forum/newth...ewthread&f=114
Afghanistan will always be to volatile for anyone to consider doing business with. They would have to maintain expensive military security.
That's because most foreigners go there as enemies. Nobody likes their place to be invaded for whatever reason. But business benefiting locals is a whole different matter... I guess China will succeed.
(SCO)--composed of China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan--was formed as a confidence-building mechanism to resolve border disputes. It has risen in stature since then, making headlines in 2005 when it called for Washington to set a timeline for withdrawing from military bases in Central Asia. Over the past few years, the organization's activities have expanded to include increased military cooperation, intelligence sharing, and counterterrorism drills. The SCO has also intensified its focus on Afghanistan, and may play a greater role in international efforts there in the near future. While some experts say the organization has emerged as a powerful anti-U.S. bulwark in Central Asia, others believe frictions between its two largest members, Russia and China, effectively preclude a strong, unified SCO.
So, we create their current government and currently have troops there and somehow we miss out on a $3 billion opportunity. Unbelievable, I mean lets try to get something out of this war.
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