Uzbek Company to Invest $1 Billion in Afghanistan’s Energy Sector
An Uzbek company has announced plans to invest around $1 billion in Afghanistan’s energy sector over the next decade, as reported by Afghan news outlet TOLOnews. The Ministry of Mines and Petroleum in Afghanistan recently signed a contract with an unnamed Uzbek company for gas exploration and production at the Tuti-Maidan gas field in Jawzjan province.
Chairman of Uzbekneftegaz, Bahodirjon Sidikov, was present during the formalization of the agreement, which is set to span 10 years. The initial investment from the Uzbek company is expected to be $100 million in the first year, with the total investment reaching nearly $1 billion over the course of the contract. The company aims to generate 100 MW of electricity in the first two years using the gas extracted from the Tuti-Maidan field.
This project is crucial for Afghanistan, according to Minister of Mines and Petroleum, Hidayatullah Badri, who stated that the gas reserves at Tuti-Maidan cover an area of 7,000 square kilometers. The initiative is expected to meet the country’s energy needs, boost national income, and create new job opportunities.
Ismatulla Irgashev, Special Representative of the President of Uzbekistan for Afghanistan, emphasized the significance of such investments in improving Afghanistan’s economic conditions and reducing unemployment. He expressed the goal of unlocking Afghanistan’s economic potential to support its economic revival and enhance the quality of life for its people.
This recent deal is part of a series of investments by Uzbek companies in Afghanistan’s natural resources. In May, Eriell Group, an Uzbek oil and gas service company, also showed interest in exploring Afghanistan’s oil fields.
