Afghanistan’s government has approved a cooperation framework agreement signed between China National Petroleum Corp. (CNPC) and the Afghan Ministry of Mines for joint exploration of oil and gas, China’s Ministry of Commerce (MOFCOM) announced on Sunday.
Afghanistan’s government has approved a cooperation framework agreement signed between China National Petroleum Corp. (CNPC) and the Afghan Ministry of Mines for joint exploration of oil and gas, China’s Ministry of Commerce (MOFCOM) announced on Sunday.
Afghan President Hamid Karzai held discussions with CNPC President Jiang Jiemin over oil and gas cooperation at the 12th annual summit of the Shanghai Cooperation Organisation (SCO) in Beijing in June, according to the announcement. The SCO is a bloc formed in 1996 that counts six Asian countries – including China, Russia and Kazakhstan – among its ranks.
CNPC and the ministry signed the framework agreement when Jiang visited Kabul in June.
The announcement comes after China and Afghanistan signed a raft of security and economic agreements during top Chinese official Zhou Yongkang’s visit to Kabul on Saturday.
Zhou was vice minister of the now-defunct Ministry of Petroleum Industry in the mid-1980s, and presently oversees China’s vast domestic security apparatus as a member of the elite Politburo Standing Committee.
CNPC operates in Afghanistan through CNPCI Watan Energy Afghanistan, a joint venture between its subsidiary CNPC International (CNPCI) and local partner Watan Oil and Gas.
CNPC began exploration and development of three blocks – Kashkari, Bazarkami and Zamuradsay – in northern Afghanistan’s Amu Darya Basin in June, about half a year after the Afghan government approved an exploration and production sharing contract (PSC) between the Ministry of Mines and CNPC for the blocks in December 2011.
“Exploration has started and is being conducted by Chinese and Afghan personnel,” Simon James Hilliard, chief executive of SJH International, told Interfax in August. SJH International is contracted by Watan Group, the parent company of Watan Oil and Gas (see CNPC begins exploration in Afghanistan, 8 August 2012).
“They’re currently shooting seismic to better determine the resource base, but there are some wells already in place which were drilled by the Soviets.
These could enter production pretty quickly, but they need some modifications first. We’re expecting first production this year,” said Hilliard.
CNPCI successfully restarted crude oil production at the Angot 12 exploration well in the Kashkari Block on 7 September, CNPC said last week. The well, which was drilled in 1969, produced approximately 60 cubic metres of crude oil within one day of testing by CNPC.
Afghanistan’s Ministry of Mines forecast in December that the three blocks in the Amu Darya are estimated to contain more than 80 million barrels (MMbbl) of crude oil reserves, to be produced over a 25-year period under the terms of the PSC, and 80 MMbbl of estimated undiscovered resources.
The 80 MMbbl of reserves is an insignificant volume compared with those beneath the Bohai Bay in northern China, and the quality of Afghan crude is not particularly high, the state-run Oriental Morning Post reported in December.
Approximately 94% of CNPC’s international oil and gas output last year was produced in regions with “high or extremely high security threats”, including Iraq, Interfax reported last week (see CNPC’s overseas assets concentrated in unstable regions, 20 September 2012).
Kabul approves CNPC oil and gas tie-up with ministry
Afghanistan’s government has approved a cooperation framework agreement signed between China National Petroleum Corp. (CNPC) and the Afghan Ministry of Mines for joint exploration of oil and gas, China’s Ministry of Commerce (MOFCOM) announced on Sunday.
Afghanistan’s government has approved a cooperation framework agreement signed between China National Petroleum Corp. (CNPC) and the Afghan Ministry of Mines for joint exploration of oil and gas, China’s Ministry of Commerce (MOFCOM) announced on Sunday.
Afghan President Hamid Karzai held discussions with CNPC President Jiang Jiemin over oil and gas cooperation at the 12th annual summit of the Shanghai Cooperation Organisation (SCO) in Beijing in June, according to the announcement. The SCO is a bloc formed in 1996 that counts six Asian countries – including China, Russia and Kazakhstan – among its ranks.
CNPC and the ministry signed the framework agreement when Jiang visited Kabul in June.
The announcement comes after China and Afghanistan signed a raft of security and economic agreements during top Chinese official Zhou Yongkang’s visit to Kabul on Saturday.
Zhou was vice minister of the now-defunct Ministry of Petroleum Industry in the mid-1980s, and presently oversees China’s vast domestic security apparatus as a member of the elite Politburo Standing Committee.
CNPC operates in Afghanistan through CNPCI Watan Energy Afghanistan, a joint venture between its subsidiary CNPC International (CNPCI) and local partner Watan Oil and Gas.
CNPC began exploration and development of three blocks – Kashkari, Bazarkami and Zamuradsay – in northern Afghanistan’s Amu Darya Basin in June, about half a year after the Afghan government approved an exploration and production sharing contract (PSC) between the Ministry of Mines and CNPC for the blocks in December 2011.
“Exploration has started and is being conducted by Chinese and Afghan personnel,” Simon James Hilliard, chief executive of SJH International, told Interfax in August. SJH International is contracted by Watan Group, the parent company of Watan Oil and Gas (see CNPC begins exploration in Afghanistan, 8 August 2012).
“They’re currently shooting seismic to better determine the resource base, but there are some wells already in place which were drilled by the Soviets.
These could enter production pretty quickly, but they need some modifications first. We’re expecting first production this year,” said Hilliard.
CNPCI successfully restarted crude oil production at the Angot 12 exploration well in the Kashkari Block on 7 September, CNPC said last week. The well, which was drilled in 1969, produced approximately 60 cubic metres of crude oil within one day of testing by CNPC.
Afghanistan’s Ministry of Mines forecast in December that the three blocks in the Amu Darya are estimated to contain more than 80 million barrels (MMbbl) of crude oil reserves, to be produced over a 25-year period under the terms of the PSC, and 80 MMbbl of estimated undiscovered resources.
The 80 MMbbl of reserves is an insignificant volume compared with those beneath the Bohai Bay in northern China, and the quality of Afghan crude is not particularly high, the state-run Oriental Morning Post reported in December.
Approximately 94% of CNPC’s international oil and gas output last year was produced in regions with “high or extremely high security threats”, including Iraq, Interfax reported last week (see CNPC’s overseas assets concentrated in unstable regions, 20 September 2012).