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Saudi Energy Consortium Enters Historic Oil and Gas Deals with Afghanistan

Saudi Arabia’s Delta Energy Group has signed landmark agreements with Afghanistan’s Ministry of Mines and Petroleum for oil and gas exploration over approximately 9,000 square miles (23,317 square kilometers) in western Afghanistan. The agreements also involve a natural gas utilization study in Herat and plans for a proposed gas pipeline stretching 435 miles (700 kilometers), potentially leading to billions in investment.

The signing ceremony in Kabul included former US Special Representative for Afghanistan, Zalmay Khalilzad, adding a geopolitical layer to the investment deal with the Taliban authorities. Delta Energy, an independent energy group based in Saudi Arabia, will explore the Kushk-Tirpul contract area, conduct geological studies, seismic surveys, and drilling to evaluate hydrocarbon resources.

Additionally, Delta will finance a study on natural gas use in Herat and a proposed pipeline, named the “CentGas–Corridor of Prosperity,” connecting Herat to Kandahar. The expected investment for the pipeline alone is about $10 billion over a decade.

Afghanistan’s acting Minister of Mines and Petroleum, Hedayatullah Badri, emphasized the significance of the agreement in developing the country’s hydrocarbon resources and enhancing energy security. Khalilzad praised the agreement’s potential, highlighting Afghanistan’s significant natural resources and its geographical position as a link between Central and South Asia.

Khalilzad’s involvement, particularly amidst high-level meetings with Taliban officials and Delta executives, raises questions about his influence on the agreements. Despite the Taliban’s diplomatic isolation, this engagement indicates a growing focus on Afghanistan’s natural resources.

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