Afghanistan shortlists companies for major oil and gas project

The Afghan government has shortlisted companies from Kuwait, the United Arab Emirates and Turkey for a major oil and gas exploration project, a step in the country's quest to reap revenues from its vast untapped mineral and energy resources.

Minister of Mines Wahidullah Shahrani said that bids from Dubai's Dragon Oil, Kuwait Energy, and the Turkish Petroleum Corp. have been selected for the tender involving exploration rights in the Tajik Basin in northern Afghanistan. The basin's oil reserves are estimated at more than 1 billion barrels.

The Tajik Basin is located between the northern cities of Mazar-i-Sharif and Kunduz. The tender includes the six blocks known to contain hydrocarbon reserves. The blocks may be awarded to a single bidder or to multiple bidders.

Afghanistan has been looking for ways to exploit some of its mineral wealth to offset the loss of revenues when foreign aid and spending drops in step with the withdrawal of international combat troops by year-end 2014. The government has been keen to develop an oil-extraction and refining capability for the landlocked nation, which is entirely reliant on fuel imports from neighboring Iran and Central Asian countries.