Taliban Terminates Major Oil Extraction Deal with Chinese Firm

KABUL, AFGHANISTAN – The Taliban has canceled a 25-year oil extraction deal with Chinese firm Xinjiang Central Asia Petroleum and Gas Co. (CAPEIC), citing repeated violations of the contract terms.

The $540 million agreement was signed in January 2023 between the Taliban authorities and the Chinese firm to extract oil from the Amu Darya basin in northern Afghanistan.