December 27th, 2011
Econintersect: There may be as much as 87 million barrels of oil in Afghanistan. Of course U.S. oil companies will get as much of that oil as they got from Iraq. According to AFP (posted at Google hosted news) the government of Afghanistan has agreed to a deal with China National Petroleum Corporation (CNPC). According to Reuters the Chinese will pay the Afghan government a 15% royalty on oil, a 20% corporate tax and up to 70% of the profits. It is estimated that over ten years Afghanistan will receive $5 billion.
Follow up:China is furiously settling up deals all over Asia and Africa, as well as other parts of the world, for resources to support their rapidly expanding economy. From Reuters:
It marks the second major deal for China in Afghanistan after Metallurgical Corp of China signed a contract in 2008 to develop the huge Aynak copper mine south of Kabul, which is due to start producing by the end of 2014.
Hat tip to Sanjeev Kulkarni.