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.

Kuwait Oil Minister: Iran, regional tension pushing oil price up

Kuwait Oil Minister, Hani Hussein, has said that drop in Iranian production coupled with regional tensions were pushing oil prices higher.  According to Hussein, "Iranian production has dropped which has contributed to raising prices and fears from regional tensions and economic issues have also pushed prices higher”.

Hussein said that despite geopolitical tensions, "oil supplies are going well and there is enough production to meet market demand which is a positive signal to the market." Iranian oil production has dropped sharply following European and US sanctions on the Islamic republic over its nuclear programme, according to OPEC.

Global oil prices rebounded sharply after better-than-expected jobs data in the United States and ongoing tensions over key producer Iran.  New York's main contract, West Texas Intermediate (WTI) light sweet crude for September, jumped $4.27 to $91.40 a barrel. Brent North Sea crude for delivery in September soared $3.04 to $108.94 a barrel in London deals.

US President Barack Obama imposed new economic sanctions on Iran's oil export sector and on a pair of Chinese and Iraqi banks accused of doing business with Tehran.