Saudi Delta Energy Partners with Taliban for $50 Billion Hydrocarbon Development in Afghanistan

Saudi Delta Energy has signed agreements worth $50 billion with the Taliban’s Ministry of Mines in Kabul to develop Afghanistan’s hydrocarbon resources.

Major Agreements in Kabul for Energy Resource Development

The Saudi company Delta Energy and the Taliban government’s Ministry of Mines and Petroleum have signed agreements totaling $50 billion in Kabul. This partnership includes the exploration and production of hydrocarbons, the utilization of natural gas in Herat, and the development of a 700-kilometer gas pipeline.

Details of the Agreement and Investment

The agreements cover an area of approximately 23,317 square kilometers and designate Delta Energy as responsible for conducting geological studies, seismic operations, and exploratory drilling in the specified regions. The primary goal of this contract is to identify the commercial capacity of hydrocarbon resources and provide energy for the industrial park in Herat and other areas.

Additionally, a supplementary agreement will be implemented to assess the proposed “Gas-Scent Pipeline,” which will connect a receiving point in the Guzara district of Herat to Spin Boldak in Kandahar. This pipeline project is expected to require an investment of around $10 billion over the next ten years.

Attendance of U.S. Representative and Officials’ Statements

At the signing ceremony, former U.S. Special Representative for Afghanistan, Zalmay Khalilzad, was also present. Taliban Minister of Mines, Hidayatullah Badri, regarded this agreement as a significant step toward the development of Afghanistan’s hydrocarbon resources and highlighted its impact on the economic activities and energy security of the country.

Delta Group’s chairman, Badr Mohammed Al-Aiban, stated that this investment goes beyond industrial activities and will contribute to the development of Afghanistan’s energy ecosystem. Shaher Al-Taqi, president and partner of Delta, expressed his satisfaction with the commencement of this partnership, noting that it would help strengthen local demand and establish a regional energy corridor.