Wednesday, December 28, 2011

China Scrambles To 'Lock In' Afghanistan`s Resources

Indian and Chinese bidders have been front-runners for deals to develop Afghanistan's vast mineral deposits, which are valued at US$3-trillion. Stringer/Reuters

China Begins Scramble For Afghanistan's Oil Reserves -- The Telegraph

China began the scramble for Afghanistan's untapped oil reserves by announcing an exploration contract with Kabul – the first such international agreement in decades.

State-owned China National Petroleum Corp (CNPC) was given approval by the Afghan government to sign the joint-venture deal with diversified Afghan company, the Watan Group.

The Chinese will lead the exploration for oil in three fields in the Kashkari, Bazarkhami and Zamarudsay basins, located in the northern provinces of Sar-e Pul and Faryab, which are estimated to hold around 87 million barrels.

Compared globally, the oilfields are comparatively small but are significantly profitable for Kabul.

Read more ....

Update #1: Afghanistan, China to sign first oil contract -- Yahoo News/AP
Update #2: Afghanistan cabinet OKs oil deal with China's CNPC -- Yahoo News/Reuters
Update #3: China wins first rights to drill for Afghan oil -- The National

My Comment: To me .... this sounds all wrong. But then again .... I guess China feels comfortable with the idea that the Taliban would not mind a Chinese presence in their country whose sole purpose would be to take resources that the Karzai government had agreed to sell to them.

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