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Two new gas wells to be drilled in northern Afghanistan this year

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Last Updated on: June 7, 2023

The Ministry of Mines and Petroleum spokesman said on Tuesday that two new gas wells will be drilled in northern Jawzjan province this year and gas processing units will be installed alongside the wells in order to purify the gas on site.

The ministry’s spokesman Hamayoun Afghan said a gas pipeline of over 90 kms long, between Jawzjan and Balkh, will be completed and put into operation this year. “This year, we will try to complete the gas pipeline between Jawzjan and Balkh, and we will continue to dig new wells in the Yatem Taq area, and we will try to increase our production in order to increase our revenue,” he said.

He said currently 600 thousand cubic meters of gas is extracted and processed in Jawzjan province daily, but plans are in place to increase this to two million cubic meters per day.

“We are trying to buy new equipment to have a processing capacity of 2.5 million cubic meters of gas per day, and we are fully prepared to launch this project,” Afghan said.

The ministry did not however give any indication of whether agreements had been signed with private investors to extract the gas.

Khan Jan Alkozai, a member of the Afghanistan Chamber of Commerce and Investment (ACCI) said the country will benefit enormously if more investment is made in this sector.

“I think that there is a high capacity in the area of energy production from gas, and in the area of attracting investment in this area, the facilities should be provided,” said Alkozai.

Currently, there are gas fields in nine areas of Jawzjan province, including in Yatem Taq, Jarqaduk, Jangal Kalan, Khowaja Bolan and other areas.

Energy production is a priority for the Islamic Emirate as the government relies on neighboring countries to supply it with over 50% of its current electricity needs.

In addition to coal-fired energy production plants, the IEA is also encouraging investment in gas to electricity plants. This process in the country is not new, as one trailblazer has been successfully supplying electricity to hundreds of thousands of people for the past few years.

The company is Bayat Power, Afghanistan’s largest, Afghan-owned and operated power production company and it has the region’s most technologically advanced gas fired electric power plant.

Launched in 2019, this commercial operation provides reliable and affordable electric power to hundreds of thousands of people in the country.

Located in Sheberghan, in gas-rich Jawzjan province, Bayat Power has steadfastly aimed to provide essential power for Afghanistan’s economic growth.

Powered by a Siemens SGT-A45 ‘Fast Power’ turbine, the world’s most advanced mobile gas to energy power solution, phase one of Bayat Power-1’s operations generates up to 44 megawatts of power for Afghan homes and businesses.

To date, Bayat Power has delivered over 700 million kilowatts of domestic power to the Afghan grid.

However, Bayat Power hopes to eventually roll out three phases in total that will generate more than 200 megawatts of electricity – enough to serve millions of Afghan residential and commercial clients.

 

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Iraqi intelligence report alleges oil smuggling network supplying Afghanistan and Turkey through Iran

The report highlights broader challenges facing regional authorities in combating illicit oil trade and enforcing international sanctions.

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An Iraqi intelligence report obtained by Sky News Arabia has revealed alleged large-scale crude oil smuggling operations from northern Iraq into Iran, where the oil is reportedly refined and later sold in regional markets, including Afghanistan and Turkey.

According to the report, shipments of crude oil are transported through land routes and unofficial trade channels into Iranian territory, where they undergo refining and processing before being re-exported to foreign markets.

The intelligence findings suggest that the alleged network is designed to bypass international sanctions and facilitate the movement of petroleum products outside official trade and financial monitoring systems.

The report further indicates that smuggling networks rely on informal transportation routes and cross-border commercial channels to maintain the collection, processing and distribution of oil products while avoiding regulatory oversight.

The revelations have raised concerns over cross-border smuggling, the loss of national resources and the potential impact of illicit oil trade on regional economies.

Security and political observers say the reported activities could put additional pressure on Iraqi authorities to strengthen border controls, monitor oil transportation routes and improve coordination with regional and international partners.

However, the allegations outlined in the intelligence report have not been independently verified, and further details about the networks involved, the quantities of oil transported and the scale of supplies reaching Afghanistan and Turkey remain unclear.

The report highlights broader challenges facing regional authorities in combating illicit oil trade and enforcing international sanctions.

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$30 million pharmaceutical investment launched in Herat as new production line opens

Meanwhile, the newly inaugurated serum and injectable production line is capable of producing up to 100,000 packages of serum per day.

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The foundation stone has been laid for three new pharmaceutical production blocks at Ovison Pharma in Herat, with an investment of $30 million, while the factory’s new serum and injectable production line has also been inaugurated.

The new production blocks will be constructed on a 3,000-square-metre site, with each facility planned to have five floors. Equipped with advanced machinery and designed to meet international standards, the expansion is expected to significantly increase the factory’s pharmaceutical production capacity.

Meanwhile, the newly inaugurated serum and injectable production line is capable of producing up to 100,000 packages of serum per day.

The expansion marks a significant step toward strengthening Afghanistan’s pharmaceutical industry, increasing domestic production and reducing the country’s reliance on imported medicines.

The investment is also expected to support the development of local manufacturing capacity and improve access to domestically produced pharmaceutical products.

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Afghanistan approves new foreign investment policy in bid to attract international investors

The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.

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Afghanistan’s Economic Commission has approved a new foreign investment policy aimed at attracting international investors, improving investment opportunities and supporting the country’s economic growth.

The decision was made during the commission’s regular meeting, chaired by Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, at the Marble Palace on Monday.

According to the Deputy Prime Minister’s Office for Economic Affairs, the proposed policy was presented by a committee established under the leadership of the economic deputy office. Following a comprehensive review and consideration of the commission’s recommendations, the policy was approved.

The policy aims to regulate foreign investment activities, facilitate investment procedures, create a favourable environment for investors, ensure investment security and promote Afghanistan’s economic growth and development.

During the meeting, the commission also approved a proposal concerning the payment of fixed taxes by commercial import companies at the country’s customs offices.

Officials said implementing the proposal would create additional facilities and simplify procedures for importing businesses.

The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.

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