Chinese oil deal cancelled, Afghan experts take over Amu Darya fields

The Ministry of Mines and Petroleum of Afghanistan has confirmed that oil extraction in the Amu Darya basin continues without interruption, now under the management of Afghan engineers, following the recent termination of a contract with the Chinese company Xinjiang Central Asia Petroleum and Gas Co. (CAPEIC).

According to the ministry, Afghan technical teams have stepped in to lead the operations using local expertise, ensuring the extraction process remains on track despite the withdrawal of China’s support.

“We have sufficient capacity in the extraction sector,” said Humayoun Afghan, spokesperson for the Ministry of Mines and Petroleum. “Our Afghan engineers are leading the work wherever possible. If the need arises, we are open to partnering with foreign or private companies. However, there has been no formal interest in transferring operations to the private sector so far.”

The ministry had previously announced that the contract with CAPEIC—signed in 2023 with a pledged investment of $150 million in the first year and a projected $540 million over three years—was canceled due to repeated violations of contractual terms. Despite the termination, officials stress that extraction activities at the Qashqari oil field and other sites have not been disrupted.

The Afghanistan Crude Oil Refinery Union also reported that work at the Qashqari field is proceeding smoothly under domestic leadership.

“We call for training and the development of new capacities so that we can utilize domestic resources and workforce in oil-rich regions across the country. This can play a significant role in achieving economic self-sufficiency and boosting domestic production,” said Zabihullah Nazari, the union’s deputy head.

Economic analysts view this shift toward domestic control as a potential turning point for Afghanistan’s resource sector. Experts say leveraging local capacity in oil and gas can reduce reliance on foreign companies, foster national resilience, and contribute to long-term sustainable development.