Results 1 to 5 of 5
  1. #1
    Thailand Expat HermantheGerman's Avatar
    Join Date
    Mar 2006
    Last Online
    20-09-2019 @ 09:21 PM
    Location
    Germany/Satthahip
    Posts
    5,068

    The U.S. and Brits are the loosers

    Exxon and BP




    Afghanistan, China sign first oil contract



    KABUL, Afghanistan Afghanistan's government signed a deal Wednesday with China's state-owned National Petroleum Corporation, allowing it to become the first foreign company to exploit the country's oil and natural gas reserves.
    The contract, which covers the northeastern provinces of Sari Pul and Faryab, is the first of several such blocks to be put on the market in coming months, Afghan Minister of Mines Wahidullah Shahrani said during the signing ceremony.


    Bidding information for blocks in neighboring Balkh province will be released at end of February, and for the western Herat province by next summer, he said.
    The ministry listed the initial value of the project with CNPC as $700 million. But the total could be ten times greater if more reserves are found and developed, and if international oil prices remain at today's levels, Shahrani said.
    The fuel pact allows the Chinese firm to research oil and natural gas blocks in Sari Pul and Faryab, an area known as the Amu Darya River Basin that was first explored by Soviet engineers in the 1960s. The Soviets estimated the reserves at about 87 million barrels, but both the Afghan and Chinese partners believe they will prove to be much larger.
    CNPC will also build a refinery Afghanistan's first within the next three years, after the real size of the reserves is established with greater accuracy, said Lu Gong Xun, president of CNPC's international branch.
    Shahrani said the deal calls for the Afghan government to receive 70% of the profits from the sale of the oil and natural gas. CNPC will also pay 15% in royalties, as well as corporate taxes and rent for the land used for its operations.
    Afghanistan's army and police will set up special units to guard the project, Shahrani said.
    The provinces of Sari Pul and Faryab are located hundreds of miles from the centers of fighting in the east and southeast and are considered relatively safe. As a result, the U.S.-led NATO force has already transferred or is turning over responsibility for security in large parts of the region to the Afghan army and police.
    Surveys conducted by the Soviets have shown that Afghanistan sits on vast mineral wealth. Afghan and foreign companies already have shown interest, notably in its untapped copper, iron and oil deposits. But with poor infrastructure and security problems stemming from the 10-year war, most Western mining companies have shied away from firm commitments.
    So far, companies from China with which Afghanistan shares a small stretch of border in its east have been in the forefront of investments in the nation.
    Three years ago the China Metallurgical Construction Co. signed a contract to develop the Aynak copper mine in Logar province. Beijing's $3.5 billion stake in the mine is the largest foreign investment in Afghanistan so far.
    Afghanistan, China sign first oil contract

  2. #2
    Thailand Expat
    OhOh's Avatar
    Join Date
    Jul 2010
    Last Online
    Yesterday @ 12:37 PM
    Location
    Where troubles melt like lemon drops
    Posts
    17,705
    Great that the Afghanis may get an oil industry.

    Not sure of the maths. A % of the "profits" + a % for "royalties" + % for "taxes and rent".

  3. #3
    Thailand Expat
    sabang's Avatar
    Join Date
    Feb 2006
    Last Online
    04-09-2019 @ 05:06 AM
    Location
    BackinOz
    Posts
    30,807
    ^ It's a much better deal for Afghanistan than many previous exploitative deals signed by western oil companies with banana republics and their bribed dictators or sheiks. Competition for resources is a geopolitical fact, and our oil companies either have to compete with the increasingly assertive Chinese etc, or be left sitting at the table. Our governments and their military machines are no longer the definitive deal makers or breakers- Iraq and Ghan are pretty much proof of that. Just one important consequence of an increasingly multi-polar world order.
    probes Aliens

  4. #4
    En route
    Cujo's Avatar
    Join Date
    Jan 2006
    Last Online
    Yesterday @ 11:51 PM
    Location
    Reality.
    Posts
    28,540
    Hilarious after the U.S. pouring so many resources into the country over the last few years.
    But wait until the Chinese start getting kidnapped and bombed.

  5. #5
    Thailand Expat
    sabang's Avatar
    Join Date
    Feb 2006
    Last Online
    04-09-2019 @ 05:06 AM
    Location
    BackinOz
    Posts
    30,807
    That's why the chinks have been assiduous in not taking sides- they can deal without prejudice with the Afghans & Iraqi's, whatever the outcome. US & allies strategy in these two countries (amongst others) has been to try and gain competitive advantage based on military adventurism. Epic Fail- but hopefully, lesson learnt. The days of gunboat diplomacy are long gone.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •