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Govt ‘Unwilling’ To Establish Major Oil Refinery

Officials from the Oil and Gas Importers Union on Monday criticized government for not taking practical steps for the private sector to establish an oil refinery in the country. 

Union members said the private sector is ready to invest $1.5 billion USD in such a project that could produce three million tons of oil from Afghanistan’s crude oil fields a year. 

Last year, the Afghan Ministry of Mines and Petroleum (MoMP) terminated the contracts of Afghan and Chinese companies which had won the tender for Amu Darya oil basin project in the northern part of the country. 

This move also lost the country an investment of $1.5 billion USD by the private sector. 

“We have completed our tasks regarding the project which includes receiving loans for the refinery, now the government must take steps,” said union chief Azarakhsh Hafizi. 

Meanwhile, mining experts have said that investments in the country’s mining sector is critical in terms of increasing national revenue. 

They called on government to accelerate efforts for the management and establishment of key projects.

“The establishment of refineries is essential to attracting investments in the oil extraction sector, because if investors come forward for this sector, this will enable us to establish standard refineries to process crude oil,” said Zaman Hashimi, a mining expert. 

“The companies which are operating in Afghanistan need to meet all requirements of the contracts, if companies do not abide by these norms, they face legal action,” said Abdul Qadeer Mufti, a spokesman for the ministry of mines and petroleum. 

Economic analysts say that the establishment of standard refineries in the country will help Afghanistan move towards self-reliance in the fuel sector.

Govt ‘Unwilling’ To Establish Major Oil Refinery

Oil and Gas Union members said the private sector is ready to invest $1.5 billion USD in such a project but that government is not giving the go ahead. 

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Officials from the Oil and Gas Importers Union on Monday criticized government for not taking practical steps for the private sector to establish an oil refinery in the country. 

Union members said the private sector is ready to invest $1.5 billion USD in such a project that could produce three million tons of oil from Afghanistan’s crude oil fields a year. 

Last year, the Afghan Ministry of Mines and Petroleum (MoMP) terminated the contracts of Afghan and Chinese companies which had won the tender for Amu Darya oil basin project in the northern part of the country. 

This move also lost the country an investment of $1.5 billion USD by the private sector. 

“We have completed our tasks regarding the project which includes receiving loans for the refinery, now the government must take steps,” said union chief Azarakhsh Hafizi. 

Meanwhile, mining experts have said that investments in the country’s mining sector is critical in terms of increasing national revenue. 

They called on government to accelerate efforts for the management and establishment of key projects.

“The establishment of refineries is essential to attracting investments in the oil extraction sector, because if investors come forward for this sector, this will enable us to establish standard refineries to process crude oil,” said Zaman Hashimi, a mining expert. 

“The companies which are operating in Afghanistan need to meet all requirements of the contracts, if companies do not abide by these norms, they face legal action,” said Abdul Qadeer Mufti, a spokesman for the ministry of mines and petroleum. 

Economic analysts say that the establishment of standard refineries in the country will help Afghanistan move towards self-reliance in the fuel sector.

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