Code 55544
PublishDate: Sunday, December 30, 2012 14:34

US firm invest $700 M in fuel refinery in Afghanistan

The investment will provide direct employment opportunities for 14,000 people and indirectly will provide working opportunities for 20,000 people.

 An Afghan and American firm will jointly investment in oil refinery in Afghanistan.
Afghanistan Invstment Support Agency (AISA) Chief Wafiullah Iftikhar on Sunday told reporters that the firm will invest $700 million for oil refinery and extraction in the country. 

He said, “The investment will provide direct employment opportunities for 14,000 people and indirectly will provide working opportunities for 20,000 people.:” 

Based on the contract the firm will construct a refinery firm which will refine around 60,000 barrels of oil on daily basis.
 
The company is expected to start its work at the end of 2015. 

In the past few years, vast deposits of untapped mineral wealth worth billions of dollars have been identified in Afghanistan, and the Afghan government hopes these deposits of copper, oil, gold, iron ore and critical industrial metals like lithium could provide valuable revenue for the country as international financial support begins to wind down. It is in the process of negotiating a series of contracts with companies to develop the projects. 

In the meantime Afghanistan signed a 25-year contract with National Petroleum Corp (CNPC) last December covering drilling and a planned refinery in the northern provinces of Faryab and Sar-e-Pul. It is the first major oil production in the country. 

The venture with CNPC, which has invested hundreds of millions of dollars, was expected to produce billions of dollars over the next two decades – CNPC will pay a 15 percent royalty on oil, 20 percent corporate tax and give 50-70 percent of its profit from the project to the government.
(KP)

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