On Tuesday, June 17, 2025, the Taliban’s Ministry of Mines and Petroleum announced the termination of a 25-year contract for the exploration and extraction of the Amu Darya oil field, originally signed with the Chinese oil and gas company. According to Humayun Afghan, the ministry’s spokesman, the decision was made due to the company’s consistent failure to fulfill its contractual obligations. In a detailed statement, Afghan explained that the contract, which had been in place for the development of the oil field, was canceled because of repeated violations by Chinese company, as outlined in the agreement.
To investigate these breaches, a joint committee was established, and its findings confirmed that Chinese company had committed significant violations that justified the contract’s termination. Humayun Afghan further elaborated on his X account, noting that the committee’s investigation revealed the company’s inability to meet its obligations, prompting the decisive action. The termination was formally proposed by the Taliban’s Deputy Economic Affairs Office and received final approval from the group’s Prime Ministerial Office, as per the Taliban’s official statement.
In the wake of the contract’s cancellation, the Taliban has issued an open call to international companies with expertise in the oil and gas sector. These companies are invited to submit formal applications to the Ministry of Mines and Petroleum to review the legal and financial documents associated with the now-terminated contract with the Chinese company, signaling the Taliban’s intent to seek new partners for the Amu Darya oil field project.
What were the terms of this contract?
This contract was the Taliban government’s “first major oil contract,” which was signed on January 15,, between the Taliban Ministry of Mines and Petroleum and China Oil and Gas Company in the presence of Abdul Ghani Baradar and the Chinese ambassador.
AfChina Oil and Gas Company was established as a joint venture between the Central Asian Oil and Gas Company in Xinjiang (CPEIC), which operates under the supervision of the China National Petroleum Corporation, and the State Oil and Gas Company of Afghanistan in Kabul.
According to information on the website of the State Oil and Gas Company of Afghanistan, the Afghan state company owns 25 percent of the shares of Afchina Company and the Chinese company owns 75 percent of its shares.
According to the Taliban’s contract with the company last year, the Off-China company was to extract oil and gas from the Amu Darya basin, covering an area of 4,500 square kilometers, located in the northern provinces of Sar-e-Pul, Jawzjan, and Faryab.
At that time, Shahabuddin Delawar, the Taliban’s then-Minister of Mines and Petroleum, said that the company would initially extract 200 tons of oil per day, then 1,000 tons, and finally 20,000 tons of oil from the region.
It was said that the Chinese company would invest $150 million in the first year and $540 million in the first three years in this oil field. The Taliban had said that the group’s share would initially be 25 percent but would increase to 75 percent over time.
After signing the contract, Taliban spokesman Zabihullah Mujahid said: “A very important clause in this contract is that if the company does not fulfill all the provisions and items mentioned in the contract within one year, the contract will be automatically terminated.”
This Taliban official had said that a Chinese company should establish an oil refinery inside Afghanistan and that exporting crude oil outside Afghanistan is prohibited.
However, the Taliban’s Ministry of Petroleum and Natural Resources has not specified which clause of the agreement Offchain has not implemented.