Chinese Firm Signs $540 Million Oil-and-Gas Deal in Afghanistan
Wall Street JournalMAR 26 2023
This deal is almost a mirror image of the one signed in 2011, which fades into memory due to both security problems involving terrorist insurgents and logistical issues. As the Taliban still hasn't proved it can contain terrorist attacks nor that it can successfully drill its resource-rich land, excitement over this deal should be quelled until it's proven plausible.
This oil extraction contract is crucial for the economic growth and self-sufficiency of Afghanistan, which is estimated to be sitting on unexploited resources worth more than $1T with the potential to create thousands of jobs and promote development. Following international standards, this deal also illustrates the growing interaction between Beijing and Kabul.