Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al-Quds Governorate: Today, the spatial division of Al-Aqsa Mosque began in a public and dangerous manner, and we warn of a religious war in the region
The Ministry of Health in Gaza: This brings the total number of victims of famine and malnutrition to 175, including 93 children
The Ministry of Health in Gaza: Gaza's hospitals recorded six deaths due to starvation and malnutrition in the past 24 hours, all of them adults
Informed sources to Al Mayadeen: A new chapter in relations between Iran and the International Atomic Energy Agency will begin within the framework of the new law passed by Parliament
Informed sources to Al Mayadeen: The talks will focus on the political aspect, and the agency's delegation will not be accompanied by any inspector
Informed sources to Al Mayadeen: An IAEA delegation will visit Tehran next week to discuss mechanisms for implementing the parliament's law suspending cooperation with the agency
Palestinian media: Herds of Israeli settlers storm the al-Aqsa Mosque and perform Talmudic rituals in it
Al Mayadeen's correspondent in Gaza: 15 martyrs were transferred to hospitals in the Gaza Strip in the past few hours as the Israeli occupation continues its aggression on the camps of the displaced
Al Mayadeen's correspondent in Gaza: 38 were killed since dawn on Saturday, as the Israeli occupation army targeted aid seekers at distribution sites
Palestinian Red Crescent: One martyr, several injuries among our teams after the occupation bombed the association's headquarters in al-Amal neighborhood, west of Khan Younis.

Beijing, Kabul to sign oil extraction deal

  • By Al Mayadeen English
  • Source: Agencies
  • 5 Jan 2023 18:57
  • 1 Shares
3 Min Read

An official in the Afghan government says that the investment made by the Chinese energy company will reach $540 million a year within three years.

  • x
  • A view of the center of Kabul, the capital of Afghanistan in 2009 (Olgamielnikiewicz\ Wiki Commons)
    A view of the center of Kabul, the capital of Afghanistan in 2009 (Olgamielnikiewicz\Wiki Commons)

Afghanistan announced on Thursday an oil agreement with a Chinese energy giant to extract oil from the Amu Darya basin in the northern part of the country.

China's Xinjiang Central Asia Petroleum and Gas Co (CAPEIC) will be in charge of the project and will invest up to $540 million a year within three years.

Acting first deputy PM for economic affairs in the Afghan government Abdul Ghani Baradar stated that the deal will boost his country's economy and strengthen its independence.

"The contractor will invest up to $150 million a year, which will increase to $540 million in three years,"  according to the minister.

According to estimates made by the Afghan authorities, the Central Asian country's oil reserves are around 1.8 billion barrels, a much-needed resource to be tapped into as the country faces an economic crisis due to the long years of US occupation and Washington's decision post-withdrawal to freeze $7 billion belonging to the country as it opposed Taliban's rise to the ruling and the ousting of the previous US-backed government of Ashraf Ghani.

Since then, Afghanistan has been hit by a winter food crisis, an economic collapse, and a terrible earthquake. Kabul's new leaders have been lobbying Washington to release their national assets.

Last December, former Afghan President Hamid Karzai admitted that he had a hand in the corruption that took place in his country during his tenure, also highlighting that the United States was involved in the corruption in question.

On the other hand, In addition to contributing to the development of Afghanistan, China has aided the country with food, winter materials, COVID-19 vaccines, and medicines worth 200 million yuan in 2022.

Related News

Reuters: Trump vows help Afghan evacuees as UAE quietly deports them

Kabul welcomes Russian recognition as gateway to deeper ties

Read more: Iran's Foreign Minister in China for meeting of Afghanistan Neighbors

The oil extraction will take place in Jowzjan and Sar-e Pol in northern Faryab with an initial quantity of one thousand tonnes per day.

According to the agreement, Afghanistan will receive a 20% share at the beginning of the project and then will rise gradually to 75% as the oil produced increases.

Authorities in Afghanistan estimated that the project will create some 3,000 jobs.

Baradar stated that the former government, led by ousted President Ashraf Ghani, previously signed an oil contract with a different Chinese company but was suspended.

However, if CAPEIC failed to meet the project requirements per the agreement the contract will be automatically terminated.

Earlier in July 2022, the Afghan embassy in China said that Chinese companies are interested in investing in Afghanistan, most notably, its mining infrastructure and the energy sector.

It's noteworthy that China shares a 76-kilometer border with Afghanistan: However, China has feared for many years that Afghanistan could become a springboard for religious extremism and Uyghur separatism in Xinjiang.  

Beijing has been maintaining friendly ties with the Taliban-led government after US forces withdrew from Afghanistan.

Read more: Russia, Uzbekistan ready to work with Afghan leadership: Lavrov

  • Afghanistan
  • Xinjiang Central Asia Petroleum
  • Taliban
  • Oil
  • China
  • CAPEIC

Most Read

A rescued crew member from the ETERNITY C vessel in a video released by the Yemeni Armed Forces on July 28, 2025 (Yemeni Military Media)

Yemen Navy reveals fate of targeted Eternity C ship crew

  • Politics
  • 28 Jul 2025
An Israeli tank explodes following an ambush by al-Qassam Brigades in Gaza, Occupied Palestine, undated (Al-Qassam Military Media)

Al-Qassam strikes Israeli vehicles in Gaza, inflicts casualties

  • Politics
  • 30 Jul 2025
UAE lodges complaint against Israeli ambassador over 'misbehavior'

UAE lodges complaint against Israeli ambassador over 'misbehavior'

  • Politics
  • 1 Aug 2025
An explosion seen during an Iranian missile attack on Tel Aviv, Occupied Palestine, June 13, 2025 (AP)

If Iran is attacked again, geography of response may change: IRGC spox

  • Politics
  • 30 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A member of the al-Qassam Brigades, the armed wing of Hamas, takes part in a parade as he celebrates a ceasefire agreement between Hamas and the Israeli regime in Deir al-Balah, Gaza Strip, Sunday, January 19, 2025 (AP)
Politics

Al-Qassam: We’ll allow aid to Israeli captives if Gaza siege ends

Freed Lebanese freedom fighter Georges Abdallah during an interview on Al Mayadeen, which aired on Sunday, August 3, 2025 (Al Mayadeen screengrab)
Politics

Exclusive: Resistance key to building state, Georges Abdallah says

United Nations Secretary General Antonio Guterres gives a statement about the situation in Gaza at UN headquarters, Friday, June 27, 2025 (AP)
Politics

UN warns Gaza faces water crisis, looming famine under Israeli siege

Israeli soldiers drive their armored personnel carrier along the Gaza Strip, in southern occupied Palestine, Wednesday, July 30, 2025 (AP)
Politics

Ex-Israeli general says Gaza starvation campaign isolated 'Israel'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS