The Taliban terminated the oil production contract with a company from China and lead it themselves

The contract of the Islamic Emirate of Afghanistan (IEA) with the Chinese company Xinjiang Central Asia Petroleum and Gas Co. (CAPEIC) has been terminated. Now oil production in the Amu Darya basin is under the direction of Afghan engineers, according to the Ministry of Mining and Petroleum Industry IEA.

According to the ministry, Afghan technical teams have taken over the management of operations using local knowledge and experience, which makes it possible to maintain production stability despite the withdrawal of Chinese support.

"We have sufficient production capacity,— said Humayun Afgan, a spokesman for the Ministry of Mining and Petroleum Industry. — Our Afghan engineers direct the work wherever possible. If necessary, we are ready to cooperate with foreign or private companies. However, at the moment there have been no official applications for the transfer of operations to the private sector."

The contract with CAPEIC was signed in 2023 with a commitment to invest $150 million in the first year and an investment plan of $540 million over three years. However, due to repeated violations of the terms of the contract, it had to be terminated. Despite this, the IEA authorities emphasize that production at the Kashkari oil field and other sites continues without interruption.

The Association for the Processing of Crude Oil IEA also reported that the work at the Kashkari field is proceeding successfully under the guidance of its own specialists.