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Afghanistan drills oil for first time in north

27 August 2010 08:34 (UTC +04:00)

Baku - APA-Economics. Afghanistan, believed to be sitting on top of billions of dollars worth of minerals and energy sources, has extracted oil for the first time and plans to pump a modest 800 barrels a day, officials said on Thursday, Reuters Africa reported.

Afghanistan’s Mines Ministry plans to open bidding soon for contracts to refine the oil from the rugged Sar-i-Pul province in the north.

"The infrastructure existed there a long time ago. We overhauled them and this is the first time we are extracting oil," said Jawad Omar, a spokesman for the ministry.

Various estimates of Afghanistan’s hidden wealth have been made in recent years -- some as high as $3 trillion -- but the challenge of exploiting those resources in a country at war and with little infrastructure has been too daunting for most investors.

Earlier this month, the Mines Ministry announced the find of an oilfield in the north with an estimated 1.8 billion barrels of oil north of Sar-i-Pul. Plans also remain on track for the tender of a 1.6 billion barrel Afghan-Tajik oil block in early 2011.

The north is Afghanistan’s key basin for oil and gas. Afghanistan hopes its untapped mineral deposits could help reduce its reliance on Western cash to bankroll its impoverished and aid-reliant economy, and for its soldiers to maintain security when foreign troops begin to withdraw.

Most of Afghanistan’s oil needs are met by vast convoys trucked across the borders from Central Asia and Pakistan.