$1 billion gas exploration deal for Afghanistan’s Jawjzan signed with Uzbek company

The Ministry of Mines and Petroleum of Afghanistan has signed a contract with a Uzbek company to explore and extract natural gas in the Totimaidan gas field in northern Afghanistan.

This ten-year contract, valued at approximately $1 billion, was signed by Afghanistan’s Deputy Prime Minister for Economic Affairs, Mullah Abdul Ghani Baradar Akhund, and a representative from the Uzbek company.

According to the agreement, the company will invest $100 million in the first year, with the remaining $900 million spread over the next nine years.

In the project’s first two years, the extracted gas will be used to generate 100 megawatts of gas-powered electricity.

The Totimaidan gas field, located in Jawzjan province, covers an area of roughly 7,000 square kilometres and holds significant gas reserves.

Once extraction begins, the project is expected to meet Afghanistan’s domestic gas needs and create thousands of direct and indirect employment opportunities.

However, concerns have been raised about the contract’s transparency, given Afghanistan’s current lack of a formal constitution and established regulatory frameworks following the collapse of the republic government.

Additionally, amid the dire humanitarian crisis and ongoing questions about Taliban government spending, ensuring that the benefits of such contracts serve national interests remains a critical issue.

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