The Taliban opened five new oil wells in Afghanistan earlier this year, reports indicate. According to a press release from the Islamic Emirate of Afghanistan’s Ministry of Mines and Petroleum, wells have been opened in the Zamrad Sai area of the Amu Darya oil basin, located in the Jawzjan province.
Daily production is expected to be about 500 tons of oil.
Ahmad Jan, Advisor to the Ministry of Mines and Petroleum, said during the a ceremony on the matter that the project was developed by Afghan engineers.
“Over the past six months alone, 400 kilometers of new surveys have been conducted in the Zamrad Sai area, resulting in the discovery of new oil and gas indications,” the release explains. “Moreover, he noted that an Afghan company is prepared to invest approximately 60$ million in the Tirpul area of the Herat oil basin.”
The Daily Caller reports that the oil wells will not affect the global economy. Steve Hanke, a professor of applied economics at Johns Hopkins University, told the outlet, “If the Taliban activate all twelve wells and hit the advertised 1,200 tonnes a day, you’re looking at roughly 8,800 barrels per day, or about a quarter of consumption.”
“That is genuine import substitution for a country that has historically produced essentially no oil, and for an economy of under $20 billion it is not trivial. If all goes according to plan this will be a modest move toward fuel self-sufficiency at best, not an oil boom,” Hanke added.
Meanwhile, China has also invested in Afghanistan’s oil industry, providing $49 million for the sector.
