The Taliban-led Ministry of Mines and Petroleum has canceled a 25-year oil extraction agreement with Chinese company Afchin, citing repeated violations of contractual obligations.
The terminated agreement covered the Amu Darya oil basin, which spans parts of Sar-e Pol and Faryab provinces in northern Afghanistan. The deal had granted the Chinese firm rights to explore and extract oil from the region under a long-term agreement.
According to the ministry, the decision was taken after the company allegedly failed to comply with several requirements outlined in the contract. The cancellation marks a significant development for Afghanistan’s oil sector and its efforts to attract foreign investment in natural resources.
Following the termination, the Taliban administration has reportedly begun seeking international consulting firms to review the case and oversee the financial settlement process between the parties.
The Amu Darya basin is considered one of Afghanistan’s important hydrocarbon regions, with oil production viewed by authorities as a potential source of revenue and economic development.
The cancellation could also raise questions about the future involvement of foreign companies in Afghanistan’s energy sector, particularly regarding contractual compliance and investment conditions.
The Taliban government has continued efforts to develop Afghanistan’s mineral and energy resources, but disputes over contracts and implementation could affect future investment agreements.