Report by Dr. Saket Dinkar | News Editor
New Delhi/ Noida/KABUL, AFGHANISTAN
The Taliban government of Afghanistan has canceled a 25-year oil extraction deal with Chinese firm Xinjiang Central Asia Petroleum and Gas Co. (CAPEIC), citing repeated violations of the contract terms & conditions.
The $ 540 million agreement which was signed in January 2023 between the Taliban authorities and the Chinese firm to extract oil from the Amu Darya basin in Northern Afghanistan.
Under the deal, the Chinese firm had committed to invest $ 150 million in the first year and a total sum of $ 540 million over three years to extract oil from a 4,500 square kilometer areas.
The region is believed to hold around 87 million tons of crude oil reserves.This cancellation of deal can be in the interests of India, if Government of India or Indian companies like Reliance, Adani group or any other organisation from India show interests to Talibani authority of Afghanistan for extraction of crude oil from the above areas of Afghanistan, in view of both countries better relationship and mutual tie up, specially in business development, seeing mutual interests & serving each other.
