Kabul (dpa) – The Afghan government on Wednesday signed a deal worth seven billion dollars with a Chinese company to explore fuel resources in its north, bordering the Central Asian countries. The deal will allow the China National Petroleum Corporation to explore and develop fuel resources in three major areas of northern Afghanistan. “The deal has been very much in favor of Afghanistan in terms of physical benefits,” Wahidullah Sharhani, Afghanistan's mines and industry minister told reporters in Kabul after signing the deal. This is the first time Afghanistan has exploited its crude oil potential. Another Chinese company had won a tender to secure copper mine in central province of Logar in 2007. “Seventy percent (of the oil will be) the share of (the Afghan) government,” Shahrani said. “On top of the income tax on profit of the company which will go to the government of Afghanistan, it will create hundreds of job opportunities.” There are three possible areas for oil extraction, all in north of Afghanistan, which consists of at least 87 million barrels of crude oil, the minister said. But the estimated figures were from the 1960s and would be a lot more with proper evaluation, he said. The Chinese state-owned company will start a primary survey within a month and will install a refinery system within two years, according to officials. The deal with the Chinese company is for 25 years. “These investments will be important steps toward Afghanistan's self-sufficiency,” the minister said, adding it will boost the country's fledgling economy. Mineral resources in war-torn Afghanistan, following three decades of conflict, have not been fully explored, officials say, estimating there may be three trillion dollars worth of oil and minerals. Afghan officials have said exploiting the wealth from minerals and oils could help the economy break its dependence on foreign aid. Minerals already documented in the country include vast reserves of high-grade iron and copper ore as well as crude oil, gas, gold, gemstones 13 different types of rare earths essential to produce electronic goods. Last month, in an interview with the dpa, Shahrani predicted the sector could contribute “more than 5 billion dollars to the gross domestic product in 2016 through the creation of jobs and the construction of infrastructure”. BM ShortURL: http://goo.gl/qtdhl Tags: Afghanistan, China, Deal, Fuel Section: Asia, Business, East Asia, Latest News
