Afghanistan and China sign multi-billion oil development deal

[News_Editor]

Afghanistan and China sign multi-billion oil development deal

2011-12-29 19:27:45 GMT+7 (ICT)

KABUL, AFGHANISTAN (BNO NEWS) -- The governments of Afghanistan and China agreed to an oil development deal on Wednesday which is expected to deliver up to $7 billion in profits for Afghanistan, local media reported on Thursday.

The agreement, which will be developed over the next 25 years, establishes that three oil fields along the Amu River in northern Sar-i-Pul and Faryab provinces of Afghanistan will be developed by the state-owned China National Petroleum Corporation (CNPC). Afghanistan will receive 70 percent of net profits.

Afghan Minister of Mines Waheedullah Shahrani told the Pajhwok Afghan News that the deposits were estimated to contain some 87 million barrels of oil. Shahrani noted that one barrel of oil is priced at $100, meaning Afghanistan would be earning approximately $7 billion in the next 25 years.

Operations are expected to begin late next year as CNPC will build Afghanistan's first refinery over the next three years, after the exact size of the reserves is determined. The joint venture is being launched with the Watan Group on behalf of the Afghan side.

The agreement was signed in the Afghan capital of Kabul by Shahrani and CNPC President Lu Gong Xun, who characterized the agreement as a sign of growing Sino-Afghan cooperation.

According to the deal, CNPC will be paying 15 percent in royalties, as well as corporate taxes and rent for the land used for its operations. Furthermore, the Chinese firm will have to ensure its operations will not affect the environment.

CNPC will be investing around $400 million during the first stage of the project, which is also expected to generate thousands of jobs.

-- © BNO News All rights reserved 2011-12-29

[koheesti]

If I remember right, China also signed one of the first deals with the new Iraqi gov't years ago. Maybe the wars really are about oil, it just isn't going to the ones fighting (just the ones helping pay for it).

[geriatrickid]

So much for the claims that the USA was in afghanistan to gain the oil resources lol.

I ca't wait for the Taliban to attack the Chinese. The reaction will be interesting.

[Pedzie]

So much for the claims that the USA was in afghanistan to gain the oil resources lol.

I ca't wait for the Taliban to attack the Chinese. The reaction will be interesting.

Do you honestly believe the US would be in Afganistan if there wasn't major oil resources in the region?

The oil and gas in the central landlocked Asia region has vast amounts of oil, this can only shipped out via a pipeline built through Afganistan and Pakistan, coincidence right ?

Same as Iraq, if they had no oil would America have invaded ?? Laughable....

[koheesti]

So much for the claims that the USA was in afghanistan to gain the oil resources lol.

I ca't wait for the Taliban to attack the Chinese. The reaction will be interesting.

Do you honestly believe the US would be in Afganistan if there wasn't major oil resources in the region?

The oil and gas in the central landlocked Asia region has vast amounts of oil, this can only shipped out via a pipeline built through Afganistan and Pakistan, coincidence right ?

Same as Iraq, if they had no oil would America have invaded ?? Laughable....

What is it about people with oil around that makes them want to piss off the lone superpower on the block?

[Pedzie]

What do you mean Koheesti?

[BookMan]

America does the bulk of the fighting...and along comes China and grabs the oil spoils.

[philw]

America does the bulk of the fighting...and along comes China and grabs the oil spoils.

Quite so.

Poetic justice perhaps or just better brains ??

[koheesti]

America does the bulk of the fighting...and along comes China and grabs the oil spoils.

Quite so.

Poetic justice perhaps or just better brains ??

More likely just part of the loan repayment deals.

[TAWP]

Remember the 'rebuild-Iraq' conference that was held [in the US] before the 2nd Iraq-war started? What other nation has held such a workshop with major companies before going to war?

The war was about control. Over the general region, over oil and other resources and over the shaping of the future. Sadly it was, as much else, done without understanding the region. While some contractors no doubt has made a killing, larger future-proof contracts seem to slip them by now...

Edited December 30, 2011 by TAWP

[Pedzie]

It's not about who grabs the oil !

The most important thing is that new oil resources reach the market !! This is why the US/NATO has invaded Iraq/Afaganistan, and also helped Libya get rid of Gaddafi. Supply n demand really, we all hate paying higher prices at the pumps for petrol!! It doesn't matter if you are Chinese or American, the more oil that is on the market then the cheaper it will be...

It just so happens that the US/NATO have the will and firepower to achieve such goals!

Libya...is sitting on an ocean of sweet crude oil ( the best kind of oil)....Now, why did US/NATO not intervene in Egypt or Tunisia during the Arab uprisings?? You may find that they don't have as much natural resources...

[koheesti]

Remember the 'rebuild-Iraq' conference that was held [in the US] before the 2nd Iraq-war started? What other nation has held such a workshop with major companies before going to war?

What other nation historically spends billion$ and billion$ rebuilding a country it just finished a war with (going back to WWII with Germany & Japan)?

[geriatrickid]

So much for the claims that the USA was in afghanistan to gain the oil resources lol.

I ca't wait for the Taliban to attack the Chinese. The reaction will be interesting.

Do you honestly believe the US would be in Afganistan if there wasn't major oil resources in the region?

The oil and gas in the central landlocked Asia region has vast amounts of oil, this can only shipped out via a pipeline built through Afganistan and Pakistan, coincidence right ?

Same as Iraq, if they had no oil would America have invaded ?? Laughable....

For the umpteenth time, the USA didn't need the oil. Are you aware that the USA only obtains 18% of its oil imports from the Middle east now? The number is dropping too. The USA is dependent upon Canada its largest energy supplier. It currently is getting 25% of its oil from there and if the oil sands project expands, it could be 50%. Toss in Mexico, Nigeria, and Venezuala and the USA has one of the most robust energy supply sources in comparison to other countries like India, China and the EU that are far more dependent upon foreign energy suppliers. ​ BTW, are you aware that Russia provides more oil to the USA than Kuwait and Oman combined?

[TAWP]

Remember the 'rebuild-Iraq' conference that was held [in the US] before the 2nd Iraq-war started? What other nation has held such a workshop with major companies before going to war?

What other nation historically spends billion$ and billion$ rebuilding a country it just finished a war with (going back to WWII with Germany & Japan)?

Indeed, it is nuts. Imagine what all that money could do back home instead...

[koheesti]

Remember the 'rebuild-Iraq' conference that was held [in the US] before the 2nd Iraq-war started? What other nation has held such a workshop with major companies before going to war?

What other nation historically spends billion$ and billion$ rebuilding a country it just finished a war with (going back to WWII with Germany & Japan)?

Indeed, it is nuts. Imagine what all that money could do back home instead...

In reality? Nothing. Never had the money in the first place, it was all borrowed.

IF we did have the money...they would not build bridges. They would not build homes. They would not build hospitals. They would not build schools. They would not feed the hungry. They would not cure the sick. Our politicians would find some way to piss it away in the wind. (although the Marshall Plan wasn't "pissing it away")

[Pedzie]

So much for the claims that the USA was in afghanistan to gain the oil resources lol.

I ca't wait for the Taliban to attack the Chinese. The reaction will be interesting.

Do you honestly believe the US would be in Afganistan if there wasn't major oil resources in the region?

The oil and gas in the central landlocked Asia region has vast amounts of oil, this can only shipped out via a pipeline built through Afganistan and Pakistan, coincidence right ?

Same as Iraq, if they had no oil would America have invaded ?? Laughable....

For the umpteenth time, the USA didn't need the oil. Are you aware that the USA only obtains 18% of its oil imports from the Middle east now? The number is dropping too. The USA is dependent upon Canada its largest energy supplier. It currently is getting 25% of its oil from there and if the oil sands project expands, it could be 50%. Toss in Mexico, Nigeria, and Venezuala and the USA has one of the most robust energy supply sources in comparison to other countries like India, China and the EU that are far more dependent upon foreign energy suppliers. ​ BTW, are you aware that Russia provides more oil to the USA than Kuwait and Oman combined?

I seriously question the 18% US oil imports to the US from the middle east! The 'oil sands project' is from Alberta ok! And it proves to costly and dirty to extract oil from this region..

Once again, it's not about US oil supply but global oil supply!

The US gets 25% of its energy supply from Canada?? May I suggest you go have a strong coffee or a cold bath! Or maybe both...

[Scott]

Oil supplies are a global commodity and a price rise is usually a global price rise.

[maidu]

America does the bulk of the fighting...and along comes China and grabs the oil spoils.

Exactly, my thoughts when I saw the topic title. US and some Europeans go in to a screwed up part of the world - maybe they improve the situation, maybe not, but recall how messed up the country was prior to the US invasion. Example: women treated worse than junkyard dogs.

While the US and allies are struggling to transform Afghanistan from cruelty to a semblence of decency, China is on the sidelines doing nothing. Now that the smoke has cleared and thousands of body bags are shipped back to the US and Europe, China steps in (to a less crazy place) to make commercial deals.

It's the Chinese way: let the others do the dirty work - to make the place safer and a bit more democratic, and then step in with handshakes and contracts.

[BookMan]

So much for the claims that the USA was in afghanistan to gain the oil resources lol.

I ca't wait for the Taliban to attack the Chinese. The reaction will be interesting.

Do you honestly believe the US would be in Afganistan if there wasn't major oil resources in the region?

The oil and gas in the central landlocked Asia region has vast amounts of oil, this can only shipped out via a pipeline built through Afganistan and Pakistan, coincidence right ?

Same as Iraq, if they had no oil would America have invaded ?? Laughable....

For the umpteenth time, the USA didn't need the oil. Are you aware that the USA only obtains 18% of its oil imports from the Middle east now? The number is dropping too. The USA is dependent upon Canada its largest energy supplier. It currently is getting 25% of its oil from there and if the oil sands project expands, it could be 50%. Toss in Mexico, Nigeria, and Venezuala and the USA has one of the most robust energy supply sources in comparison to other countries like India, China and the EU that are far more dependent upon foreign energy suppliers. ​ BTW, are you aware that Russia provides more oil to the USA than Kuwait and Oman combined?

I seriously question the 18% US oil imports to the US from the middle east! The 'oil sands project' is from Alberta ok! And it proves to costly and dirty to extract oil from this region..

Once again, it's not about US oil supply but global oil supply!

The US gets 25% of its energy supply from Canada?? May I suggest you go have a strong coffee or a cold bath! Or maybe both...

Some stats here....

http://www.globalpost.com/dispatch/100726/top-7-us-oil-importers

[geriatrickid]

I seriously question the 18% US oil imports to the US from the middle east! The 'oil sands project' is from Alberta ok! And it proves to costly and dirty to extract oil from this region..

Once again, it's not about US oil supply but global oil supply!

The US gets 25% of its energy supply from Canada?? May I suggest you go have a strong coffee or a cold bath! Or maybe both...

Your incorrect statements and allegations highlight what is wrong with webforums like this. People post misleading and false information and then react negatively when it is pointed out that they are wrong. You doubt that the US dependency upon Canada (and Mexico)? Then why don't you take the time to look up the numbers? Are you even aware that the US power grid is even more dependent upon Canadian hydro electricity generation? Canada is the only country that could shut down the US economy overnight if it turned off the electricity and natural gas and oil pipelines. Are you even aware that the oil fields of Saskatchewan are more important than the alberta tar sands now, or that Russia is more important than some middle east suppliers? The US never needed Afghanistan oil, nor was interested in it. China and Pakistan have the vested interest.

[Nasreddin]

Why you have these issues if the Chinaman buys some oil in Afghanistan?

[Nasreddin]

It's the Chinese way: let the others do the dirty work - to make the place safer and a bit more democratic, and then step in with handshakes and contracts.

If you ask the Chinese they would be probably more happy if you would NOT do any of your 'dirty work' in Asia at all.

[Nasreddin]

Remember the 'rebuild-Iraq' conference that was held [in the US] before the 2nd Iraq-war started? What other nation has held such a workshop with major companies before going to war?

What other nation historically spends billion$ and billion$ rebuilding a country it just finished a war with (going back to WWII with Germany & Japan)?

Who spent "billion$ and billion$" in Germany and Japan? How many "billion$" exactly?

[koheesti]

Remember the 'rebuild-Iraq' conference that was held [in the US] before the 2nd Iraq-war started? What other nation has held such a workshop with major companies before going to war?

What other nation historically spends billion$ and billion$ rebuilding a country it just finished a war with (going back to WWII with Germany & Japan)?

Who spent "billion$ and billion$" in Germany and Japan? How many "billion$" exactly?

Billion$ and billion$ going back to WWII means from present day back 65 years. But, Europe alone received several billion in the years after WWII. Asia got about $6 billion of which $2.44 billion went to Japan.

The reconstruction plan, developed at a meeting of the participating European states, was established on June 5, 1947. It offered the same aid to the Soviet Union and its allies, but they did not accept it.^[3][4] During the four years that the plan was operational, US $13 billion in economic and technical assistance was given to help the recovery of the European countries that had joined in the Organization for European Economic Co-operation. This $13 billion was in the context of a U.S. GDP of $258 billion in 1948, and was on top of $12 billion in American aid to Europe between the end of the war and the start of the Plan that is counted separately from the Marshall Plan.^[5]

http://en.wikipedia.org/wiki/Marshall_Plan#Loans_and_Grants

[Nasreddin]

^^ Japan is not in Europe and there are are more states than only Germany in Europe and loans getting repaid.

Edited January 1, 2012 by Nasreddin

[koheesti]

^^ Japan is not in Europe and there are are more states than only Germany in Europe and loans getting repaid.

Germany and Japan were rightfully given as examples of where the billions and billions have been spent the past 65 years. I appreciate people trying to participate in a forum where the language is not your native language but in such cases you should be careful arguing semantics.

As for the topic of this thread, I have no problem with the Chinese giving the Afghans money to buy oil. That's what international trade is all about. Was the Taliban handing out oil contracts? Hopefully at least some of the revenue will be put towards making life better for the Afghan people and not just buying castles in Europe. I know for the critics of the Afghan War, this deflates their argument that the war was so America could steal oil from Afghanistan but they'll get over it, not like the first time they've been proved wrong.

[Nasreddin]

If I remember right, China also signed one of the first deals with the new Iraqi gov't years ago. Maybe the wars really are about oil, it just isn't going to the ones fighting (just the ones helping pay for it).

Helping to pay for it...? pay for what? Bombs, guns, fighter aircrafts, tanks, uniforms and soon on what ever is needed to make war. Someone is selling that stuff and probably makes a good profit with it and it gives also a lot of people jobs who have than money to buy pizza and freedom fries. That how it works.

But if your gasoline doesn't become cheaper after the war don't blame China for it.

[maidu]

It's the Chinese way: let the others do the dirty work - to make the place safer and a bit more democratic, and then step in with handshakes and contracts.

If you ask the Chinese they would be probably more happy if you would NOT do any of your 'dirty work' in Asia at all.

'dirty work' in this context, could well mean; kick out a sadist like Saddam or (two doors down) kick out the female-tormenting Taliban in Afghanistan. As for China's priorities: It just wants to do business, particularly getting natural resources. China has no problems with ruthless dictators or repressive regimes. About the only thing that spooks the Chinese politburo is successful uprisings by the people against oppressive dictatorships. The reason: China's leaders fear it will put similar notions in the minds of the oppressed Chinese people ....or the Tibetans.

[Pedzie]

I seriously question the 18% US oil imports to the US from the middle east! The 'oil sands project' is from Alberta ok! And it proves to costly and dirty to extract oil from this region..

Once again, it's not about US oil supply but global oil supply!

The US gets 25% of its energy supply from Canada?? May I suggest you go have a strong coffee or a cold bath! Or maybe both...

Your incorrect statements and allegations highlight what is wrong with webforums like this. People post misleading and false information and then react negatively when it is pointed out that they are wrong. You doubt that the US dependency upon Canada (and Mexico)? Then why don't you take the time to look up the numbers? Are you even aware that the US power grid is even more dependent upon Canadian hydro electricity generation? Canada is the only country that could shut down the US economy overnight if it turned off the electricity and natural gas and oil pipelines. Are you even aware that the oil fields of Saskatchewan are more important than the alberta tar sands now, or that Russia is more important than some middle east suppliers? The US never needed Afghanistan oil, nor was interested in it. China and Pakistan have the vested interest.

Ok I was wrong, I'll stand up and hold my hand up to that one!

America still has a vested interest in all the major oil regions in the world, surely you don't believe the US is in Afgan and pakistan coz of terrorism?? They are there to ensure the pipeline gets built from central Asia thru to afgan and Pakistan.

With ever increasing demand for oli, especially India and China...The flow of oil must keep flowing and at an even faster rate! We all know most of the worlds oil comes from volatile regions, the US and it's allies can be found in all these regions, for humanitarian purposes may be??

The US is the only country to keep things in check, we all know if there was a war in many parts of the world then our life is screwed!

Why is 25.000 US troops based in Saudi Arabia? And has been since the end of the 1st Gulf war, my gues is to secure the current regime there and also safegaurd the oli supplies, but after hearing some news yesterday Iran plans to block of the honiz straight, therefore blocking oil supplies to the west...

I don't agree with much of what the US does around the world but without them the world would be a hell of a more dangerous place!!

[koheesti]

Why is 25.000 US troops based in Saudi Arabia? And has been since the end of the 1st Gulf war, ...

I thought US military personnel left Saudi almost a decade ago.