$1.3b oil refinery’s design finalised

SHIBERGHAN (Pajhwok): The design of a $1.3 billion oil refinery, which the Chinese National Petroleum Company (CNPC) plans to build in northern Jawzjan province, has been finalised, an official said on Wednesday.

Afghanistan will earn $3 billion a year in revenue from the refinery’s operations.

In 2011, CNPC entered into a joint-venture with Watan Oil and Gas, an Afghan company, to explore for oil in the Kashkari, Bazarkhami and Zamarudsay basin fields valued roughly at $700 million.

Currently, CNPC has a 25-year contract to exploit discovered oil fields and has agreed to pay the Afghan government 15 percent exploration tax per barrel, a 20 percent business tax, and a 70 percent share of total revenue.

Watan Oil and Gas Director Ahmad Atif Popalzai said they had been working on the refinery’s design since last year and had finalised it.

He told Pajhwok Afghan News practical work on the mega project would be initiated in May and more than 300 Afghan workers and engineers would be hired.      

The refinery is being established in Jerqadoq area on the outskirts of Shiberghan, where unrefined oil would be brought from fields in Angot and Qashqari areas of Sur-i-Pul and Faryab provinces.

Oil reserves at the Amu River in Faryab and Sur-i-Pul provinces are estimated at 87 million barrels — the largest in Afghanistan.

Popalzai said 60 percent revenue of the refinery would go the Afghan government and the remaining to the Chinese firm.      

A 50 megawatt electricity production plant is also part of the project; according to Popalzai, who said the power would be supplied to the refinery and Shiberghan dwellers. 

mrh/ma