According to Mr Jalil Jumriany policy director of the Ministry of Mines of Afghanistan that the ministry signed an agreement with PetroChina to allow it explore petroleum and build a refinery in Sari Pul Province of Afghanistan. This marks the first time in several decades a local government in Afghanistan has allowed a foreign business to explore petroleum.

Mr Jumriany expects the prospect to be approved by the governments of both countries in two months.

In the first two years, PetroChina will invest USD 200 million to USD 300 million in local exploration. It has also agreed to pay a 15% exploration tax and a 30% income tax as well as 70% of profits from the program to the local government, contributing nearly USD 5 billion in income to the government over the next 10 years. Engineering work on the project will start at beginning of next year.

(Sourced from yicai.com)