Saudi Energy Company to Invest Tens of Billions of Dollars in Afghanistan’s Oil and Gas Development

[Financial News] Saudi Arabia’s energy company Delta Energy has signed a series of agreements to explore and develop Afghanistan’s oil and gas resources. Attention is focused on whether the agreements will attract tens of billions of dollars in investment to Afghanistan’s energy sector in the coming years.
According to energy outlet OilPrice on the 8th local time, Afghanistan’s Ministry of Mines and Petroleum announced that the first contract, initially valued at $200 million, covers exploration and development in the western Kushk-Tirpul regional basin. Delta Energy plans to assess the area’s commercial viability through geological and geophysical surveys, seismic exploration, construction work, and reservoir evaluation.
The comprehensive agreement, covering approximately 23,000 square kilometers, includes a study to supply natural gas for industrial use and power generation to the Herat Industrial Park and the city of Herat.
In particular, Delta Energy plans to conduct a feasibility study for a 700-kilometer natural gas pipeline running from near Herat to Spin Boldak, an Afghan city on the border with Pakistan. The pipeline project alone is estimated to cost approximately $10 billion over 10 years.
Delta Energy said that, if the entire long-term project is activated, it could attract up to $50 billion in investment over 25 years. Another estimate puts total investment—including resource exploration, oil-field development, and gas infrastructure—at up to $60 billion over 10 years. However, the figures may change depending on exploration results, the confirmation of reserves, financing, and the final investment decision (FID).
The agreement aligns with the Afghan government’s strategy to rapidly develop its abundant but largely untapped hydrocarbon resources. This week, Afghanistan also signed a separate $13.8 million agreement with Russia’s TNG to develop the Amu Darya oil field and build a new production facility capable of processing up to 2,000 tons of crude oil per day, accelerating efforts to expand its energy infrastructure.
[email protected] Yoon Jae-jun Reporter