UK to Support Afghanistan in Exploring Hydrocarbons

The UK government is planning to support Afghanistan in developing its mineral and hydrocarbon sector.

Financial Times has reported that UK’s Department for International Development would provide a three-year programme of support to Afghanistan’s Ministry of Mines costing £10 million.

London-listed Dragon Oil, which holds interests in neighbouring Turkmenistan, is among early-stage investors in the country.

Last yearin July, Afghanistan’s Ministry of Mines said that the companies would be allowed to explore for oil and gas in the Afghan-Tajik Basin of northern Afghanistan. It said that the six blocks on offer are estimated to contain several hundred million barrels of oil equivalent.

Companies that showed interest were Dragon Oil, Kuwait Energy, India's ONGC Videsh, Petra Energia of Brazil, Pakistan Petroleum, Thailand's PTT Exploration & Production (PTTEP) and Turkey's TPAO.

The tender process is expected to be completed with the award of contracts to the winning bidders in early 2013.