February 4, 2023

Fior Markets News Blog

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Oil deal in Afghanistan, a new chapter in China-Taliban ties?

  • Peter Hoskins
  • BBC News

image source, Good pictures

image caption,

A foreign company has won the first oil mining contract in Afghanistan since the Taliban came to power.

Afghanistan’s Taliban government has awarded a contract for oil drilling in the country’s north to a Chinese company.

This agreement has been made for 25 years. China has described it as an ‘important project’ for both countries. China’s economic activities in the region are expected to increase after the agreement is reached.

It is the first major oil deal with a foreign company since the Taliban took over Afghanistan in 2021. No government in the world has yet recognized the Taliban government of Afghanistan.

Taliban officials said Thursday that security forces had targeted Islamic State militants who attacked a hotel used by Chinese businessmen.