The cancellation of a 25-year oil extraction contract with China’s “Af China” company for the Amu Darya project has sparked strong reactions from economic analysts in Afghanistan.
Experts view this move as a serious threat to the future of the country’s major economic projects.
They believe that reassigning the Amu Darya project will take considerable time, and any delay in restarting the operations could have negative economic consequences.
Economic analyst Ahmad Firdaws Bahgzain stated: "Often, violations of project and contract terms reduce the interest and motivation of companies and investors, as such actions damage the credibility of a project. In the case of this Chinese company, which is a foreign investor, it was expected to have a solid long-term strategy for its 25-year investment."
Another economic expert, Siyar Quraishi, also commented: "Cancelling such contracts creates a climate of commercial distrust and casts doubt on Afghanistan’s investment environment. Furthermore, financial and technical obligations between both parties raise questions about investment security. Altogether, this can threaten the investment landscape and leave negative impacts on the sector."
However, the Ministry of Mines and Petroleum insists that this move will not hinder the continuation of the project.
According to the ministry’s spokesperson, the cancellation sends a clear message to both domestic and international companies that all contractual commitments must be fully honored.
Ministry spokesman Homayoun Afghan elaborated: "Contracts are settled and reviewed by third-party and international auditing companies. Legal and technical evaluations are conducted, and the project site is handed back to the Ministry of Mines and Petroleum. The region contains active oil wells, and, as usual, the Ministry’s technical teams will carry out the extraction from these wells."
The Amu Darya contract was terminated by order of the Islamic Emirate’s Office of the Prime Minister due to repeated violations and failure to meet financial commitments by the Afghan China company.
According to the Ministry of Mines and Petroleum, the company was required to invest \$500 million during the first three years of the contract — an obligation it failed to meet.
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