Saudi Arabia’s Delta Energy has signed a series of agreements to explore and develop Afghanistan’s oil and gas resources, potentially paving the way for tens of billions of dollars in energy investment.
Afghanistan’s Ministry of Mines and Petroleum says an initial $200 million contract covers exploration and development in the Kushk-Tirpul basin in western Afghanistan. Delta plans geological and geophysical studies, seismic surveys, exploration drilling and reservoir assessments to determine the region’s commercial potential.
The broader agreements cover an area of roughly 23,000 square kilometers and include plans to study supplying natural gas to Herat Industrial Park and Herat City for industrial use and power generation.
More ambitiously, Delta will study a proposed 700-kilometer natural gas pipeline dubbed the “CentGas – Corridor of Prosperity,” running from near Herat to Spin Boldak on Afghanistan’s border with Pakistan. The pipeline alone could require around $10 billion of investment over ten years.
Delta has suggested the wider program could eventually attract $50 billion over 25 years, while another estimate puts potential investment across exploration, field development, gas infrastructure and associated facilities at as much as $60 billion over ten years. Those figures remain highly preliminary and depend on successful exploration, sufficient reserves, financing and final investment decisions.
The deal comes as Afghanistan seeks to accelerate development of its largely untapped hydrocarbon resources. Separately, Kabul this week signed $13.8 million of agreements with Russia’s TNG covering the Amu Darya oil basin and a new production facility capable of processing up to 2,000 metric tons of oil per day.
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