Saudi company signs $200 million energy deal in Afghanistan

Saudi Arabia’s Delta Energy International has signed a 25-year, $200 million oil and gas contract with Afghanistan’s Ministry of Mines and Petroleum.

Under the agreement, exploration and production activities will begin in the Kushk-Tirpul basin in western Afghanistan. According to the Afghan government, the initial investment will cover seven gas blocks in the Kushk area.

The larger basin, located between Herat and Badghis provinces, covers approximately 22,000 square kilometers. Delta Energy International said the broader program could attract up to $60 billion in potential investment over 10 years.

The company said the amount would depend on exploration results, the adequacy of reserves, technical and economic feasibility, financing, regulatory approvals and final investment decisions.

Afghanistan’s Minister of Mines and Petroleum Hidayatullah Badri described the agreement as a step toward increasing the country’s energy self-sufficiency, particularly in the gas sector.

“There is hope that exploration and production activities will enable Afghanistan to meet its gas needs. Another positive aspect is that the company signing the contract has a strong reputation,” Hidayatullah Badri said.

Delta Energy International Chief Executive Officer Shaher Al-Taghi said the agreement reflected a partnership-based approach. He stressed that the company’s policy was built on a “win-win” principle.

Zalmay Khalilzad, the former US special representative for Afghanistan, who attended the signing ceremony, said the country could play a broader regional role. Afghanistan, he said, could serve as a bridge linking two regions.

Delta Energy International is also examining a 700-kilometer gas pipeline project that would run from Herat to an area near Spin Boldak in Kandahar province. The company estimates that the project could cost approximately $10 billion, depending on feasibility, financing and approvals.

Afghanistan has significant but underdeveloped oil and gas resources. New exploration agreements are aimed at expanding domestic production, reducing reliance on energy imports and attracting foreign investment, although project implementation will depend on security, infrastructure and regulatory conditions.