Chinese state-backed oil giant CNPC has acquired the rights to the first Afghan oilfield to be auctioned following the overthrow of the Taliban ten years ago, to the chagrin of Tethys Petroleum, a rival bidder.
The state-owned Chinese oil company had submitted the highest bid for the Kashkari, Bazarkhami and Zamarudsay blocks in the Amu Darya basin in Northern Afghanistan, as well as offering to pay a 15% royalty on each barrel of oil, and a 30% tax on its profits, according to the Financial Times.
Reacting to the news, Tethys said “As a commercial oil and gas company Tethys could not offer the same terms as CNPC which, in Tethys’ view, would make the project non-commercial. Tethys still believes there is good oil and gas potential in Afghanistan and will evaluate any other future opportunities there.”
Tethys, which listed on the London Stock Exchange in July, is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Tajikistan, Kazakhstan and Uzbekistan.
The three blocks are the first to be tendered internationally in four decades, Bloomberg reported.
