BY SAEED SHAH
AND ESMATULLAH KOHSAR
KABUL—A Chinese company
signed a $540 million deal
with Afghanistan to develop an
oil-and-gas field, as Beijing
moves to secure access to the
country’s vast mineral wealth
after the exit of U.S. troops.
In the biggest deal struck
since the Taliban’s takeover in
2021, Xinjiang Central Asia Petroleum and Gas Co. Ltd. said
that during the next three
years it would develop the
field in the Amu Darya basin
in northern Afghanistan, according to the Afghan regime.
Afghanistan’s aid-dependent
economy collapsed after the August 2021 withdrawal of American forces and the Taliban’s
toppling of the U.S.-backed government. The regime, which
hasn’t been recognized by any
country, is trying to stabilize
the economy by attracting investments that create jobs for
poverty-stricken Afghans. Developing mines and hydrocarbon resources is seen as one of
the few economic options.
Raffaello Pantucci, co-author
of a book about China’s growing
influence over its Muslim-majority neighbors, said that the
estimated oil reserves at the
Amu Darya site are modest, but
the hope is that a big gas field
across the border with Turkmenistan extended into Afghanistan—and that such a find could
make it a linchpin for the economy, as it is for Turkmenistan.
Mullah Abdul Ghani Baradar, the Taliban’s deputy
prime minister for economic
affairs, said at a contract-signing ceremony for the new field
in Kabul on Thursday that his
administration aims to build a
sustainable economy.
International aid to Afghanistan continues for now, with
two-thirds of the population in
need of help, but is in jeopardy since the Taliban banned
women working in nongovernmental organizations. Girls
and women also are being excluded from education.
U.S. experts a decade ago estimated the value of Afghanistan’s mineral resources at $1
trillion, which include rare-earth
minerals now used in electric
cars. While war raged, this potential wealth wasn’t exploited.
The Taliban have since imposed their rule on the entire
country, providing some security, despite patchy opposition
from remnants of the ousted
government and Islamic State
transnational jihadist group. The
threat extends to the Chinese
presence. After the bombing of a
Chinese-owned hotel in Kabul in
December, which was claimed by
Islamic State, China advised its
citizens to leave the country.
It is still the safest it has
been in decades to develop Afghan mining and oil projects.
However, the country’s rulers
are under international sanctions, hindering Western firms
from getting involved. That
clears the way for China. Iran,
another U.S. rival, also is looking to win Afghan mining deals.
“The progress of this project is a model for China-Afghanistan cooperation in major projects in energy and
other fields,” said China’s ambassador in Kabul, Wang Yu.
Xinjiang Central Asia Petroleum and Gas, which didn’t respond to a request for comment, took over the Amu
Darya project from China National Petroleum Corp.