25-Year Oil Contract For Amu Darya Cancelled

The Taliban's Ministry of Mines and Petroleum has announced the cancellation of a 25-year oil extraction contract in the Amu Darya basin with the Chinese company Afchin, citing repeated breaches of agreement terms.

In an official statement issued on Tuesday, June 17, the ministry stated that joint investigative committees had been formed to examine contractual violations. The findings reportedly confirmed that Afchin had repeatedly failed to meet its obligations.

The statement added that Afchin was not only non-compliant but also failed to implement agreed commitments, prompting the ministry to take legal steps to terminate the contract formally.

The Taliban has invited international legal and consulting firms to evaluate the legal aspects of the contract and to oversee financial settlements with the Chinese company.

According to the agreement, the Chinese company Afchin had committed to investing $150 million in the first year and $540 million over three years.

The Amu Darya oil field, located in Afghanistan's Sar-e-Pul and Faryab provinces, spans over 4,500 square kilometers and contains an estimated 87 million tons of confirmed crude oil reserves, according to Taliban officials.

Analysts from energy watchdogs and institutions such as the International Energy Agency (IEA) note that instability in Afghanistan's investment climate could further deter foreign interest, despite its significant untapped natural resources.

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