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KABUL – The Taliban reported selling 150,000 tons (1.1 million barrels) of crude oil from the Amu Darya basin for over $80 million in just 10 days.
Over 130,000 tons of crude oil fetched $71.6 million, followed by an additional 20,000 tons (146,000 barrels) sold for $10.5 million on Sunday, said spokesperson for the Ministry of Mines and Petroleum Humayun Afghan.
This rapid sale is a remarkable turnaround for a country that previously imported its daily oil consumption of 50,000 barrels from neighbors like Iran and Uzbekistan. The upswing began a year ago when China’s Xinjiang Central Asia Petroleum and Gas Co (CAPEIC) signed a 25-year contract with the Taliban. CAPEIC has committed to a $150 million investment in the first year, escalating to $540 million by 2026. Despite initial hurdles, including inaccurate cost estimates and delays in financial plan approvals, CAPEIC has invested $49 million, boosting Afghanistan’s daily crude output to over 1,100 metric tons (8,000 barrels per day).
The Amu Darya basin, shared by Afghanistan and Tajikistan, is estimated to hold 962 million barrels of crude oil and 52,025 billion cubic feet of natural gas, according to a 2011 U.S. Geological Survey report. CAPEIC aims to increase daily production to over 2,000 tons (approximately 15,000 barrels) by drilling 22 additional wells in 2024.
Since the U.S. withdrawal from Afghanistan in 2021, Beijing has increased its diplomatic engagements with the Taliban, suggesting a burgeoning cooperation. In January, Chinese President Xi Jinping received the Taliban’s ambassador to Beijing, a move that puzzled many as no country has formally recognized the Taliban government. This interaction, however, might not signify official diplomatic recognition.
Despite Afghanistan’s resource appeal, China remains cautious about the country’s internal security, the reliability of Taliban guarantees on foreign investments, and the poor infrastructure. “The attraction of Afghanistan’s mining and energy resources is strong, but there is considerable Chinese wariness,” said Andrew Scobell, a distinguished fellow for China at the United States Institute of Peace.
Geopolitical analysts propose that Beijing’s engagement with Afghanistan primarily aims to mitigate risks amidst a potential security vacuum, especially given their shared 92-kilometer border. Last year, Beijing and Islamabad agreed to integrate Afghanistan into the China-Pakistan Economic Corridor, promoting enhanced connectivity through civil-military cooperation.
