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
Palestinian media: Israeli occupation forces storm the Old City in the center of Nablus, occupied West Bank
Local sources to Al Mayadeen: Sudanese army forces drones strike town of Kabkabiya, North Darfur.
Syrian Observatory: The plane is loaded with air defense systems and heavy weapons as part of US troop reinforcements to its bases in northeastern Syria
Syrian Observatory: US cargo plane lands with two military helicopters at Kharab al-Jir base in the countryside of Rmeilan, north of Hasakah
Miguel Díaz-Canel to Gustavo Petro: US seeks to reimpose the Monroe Doctrine in its relations with sovereign states in Latin America and the Caribbean.
The Abu Ali Mustapha Brigades, the military wing of the PFLP, says they handed over the body of an Israeli captive to the Israeli occupation forces in implementation of the clauses of the ceasefire agreement.
Al Mayadeen correspondent: Israeli drones are flying over the presidential palace in Baabda, Mount Lebanon, and over the skies of the capital, Beirut, and its suburbs.
Al Mayadeen's correspondent in South Lebanon: Israeli warplanes launch a series of raids on the al-Mahmoudiya and Jarmaq areas
Trump reiterates proposal for Russia and Ukraine to stop at current front line, negotiate later
Reuters: Trump says no discussion regarding Ukraine ceding Donbas to Russia

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

Egypt welcomes Pakistan-Afghanistan ceasefire deal

Pakistan and Afghanistan agree to ceasefire after Doha talks

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

Iran strikes secret Israeli-US bunker under Tel Aviv high-rise

Tel Aviv high-rise struck by Iran hid Site 81, secret US-Israeli base

  • Politics
  • 14 Oct 2025
Yemeni Armed Forces Chief of Staff Major General Mohammad Abd al-Karim al-Ghamari , during a ceremony in an undisclosed locations in Yemen, undate (Yemeni Military Media)

Yemeni Armed Forces mourn martyred Chief of Staff al-Ghamari

  • Politics
  • 16 Oct 2025
Israeli occupation violates Gaza ceasefire, killing seven Palestinians.

Israeli occupation violates Gaza ceasefire, kills seven Palestinians

  • Politics
  • 14 Oct 2025
Zionists Fundamentally Misread Iran Due To Their Own Echo Chambers

Zionists fundamentally misread Iran due to their own echo chambers

  • Analysis
  • 15 Oct 2025

Coverage

All
War on Gaza

Read Next

All
UK blocks release of documents on secretive Lammy-Sa’ar meeting.
Politics

UK blocks release of documents on secret Lammy-Sa’ar meeting

Colombia slams Trump’s drug accusation, defends sovereignty
Politics

Colombia slams Trump’s incendiary drug claims, defends sovereignty

The abuse was detailed in Giuffre's memoir "Nobody's Girl: A Memoir of Surviving Abuse and Fighting for Justice." (AP)
Politics

Epstein victim recounts choking, sexual assault by 'well-known PM'

The US Secret Service discovered a hunting stand near the airport President Donald Trump uses in Florida. (US Secret Service)
Politics

FBI probes hunting stand with sightline to Trump’s Air Force One exit

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