Saudi Delta Energy and Taliban Sign $50 Billion Agreement to Exploit Afghanistan’s Hydrocarbons

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

Major Agreement in Kabul for Energy Resource Development

Saudi company Delta Energy and the Taliban Ministry of Mines and Petroleum have finalized agreements totaling $50 billion in Kabul. These agreements include the exploration and production of hydrocarbons, 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. Under these terms, Delta Energy will be responsible for conducting geological studies, seismic operations, and exploratory drilling in designated areas. The primary aim of this contract is to identify the commercial potential of hydrocarbon resources and provide energy for the industrial park in Herat and other regions.

Additionally, a supplementary agreement will assess the proposed “Cent-Gas-Prosperity Corridor” pipeline, which will connect a receiving point in the Ghazra district of Herat to Spin Boldak in Kandahar. This pipeline is expected to require an investment of around $10 billion over the next decade.

Presence of U.S. Representative and Officials’ Remarks

Former U.S. Special Representative for Afghanistan, Zalmay Khalilzad, attended the signing ceremony. The Taliban’s Minister of Mines, Hidayatullah Badri, described the agreements as a significant step in developing Afghanistan’s hydrocarbon resources, highlighting their impact on economic activities and energy security.

Badr Mohammed Al-Ibayan, head of Delta Holdings, claimed that this investment goes beyond industrial activities and will contribute to developing Afghanistan’s energy ecosystem. Shaher Al-Taqi, president and partner at Delta, expressed enthusiasm for the beginning of this collaboration, asserting that the plan will strengthen local demand and create a regional energy corridor.