Afghanistan oil and gas tender
Afghanistan’s Ministry of Mines & Petroleum has issued a tender for exploration and production across a block in the Amu-Darya Basin. It is reported that the region is one of four areas in the north of the country that have been estimated to hold some 1.6bn barrels of crude oil, 16tn cf of natural gas and 500mn barrels of natural gas liquids (NGLs).
Commenting on the announcement, Neil Shah, Global Director of Research at Edison Investment Research, said: ‘It is highly likely that Anglo-American oil companies should benefit from this tendering process… The potential for UK and US oil company returns in Afghanistan is not dissimilar from the payback that UK and American oil explorers and service companies eventually gained from Iraq and neighbouring regions post both Gulf wars, including from the oil rich northern Kurdistan regions currently being developed by companies such as Gulf Keystone, Genel Energy and Petrofac.’
He continued: ‘The success of long-term UK and US oil company involvement in Afghanistan will depend on the ability to strike a long-term sustainable political agreement, including with the Taliban , which will need to include a sensible tax and royalty scheme which encourage oversees investment while ensuring local popular buy in to any wealth generation.’
News Item details
Journal title: Petroleum Review
Countries: Afghanistan - Central Asia -
Subjects: Exploration and production, Taxation
