Kabul: With supply routes affected and countries looking for other options due to tensions around the Hormuz Strait, Afghanistan has now reported early-stage oil production from its northern region. The development adds another possible source of oil in the region.
Kabul’s Ministry of Mines and Petroleum confirmed that oil extraction has begun in the Jamrad Sai area of the Amu Darya basin in Jowzjan province. Five wells, it said, are presently in operation, and the site is producing around 500 cubic metres of oil per day. Officials also said recent geological studies in the area show signs of more oil and gas reserves.
In the past six months, around 400 kilometres of seismic surveys were carried out in Jamrad Sai. These studies helped identify additional underground resources and guided the present drilling work. The ministry said this phase is part of a plan to explore and use Afghanistan’s natural resources in a more structured way.
The development comes at a time when countries, including India, are exploring new sources of crude oil due to supply uncertainty in West Asia. India has recently increased imports from African nations as part of this diversification effort. Afghanistan’s entry into early production could, in the long run, add another supply option in the region, especially if export systems are developed.
Officials in Afghanistan said that this progress follows nearly three years of geological surveys, research work and drilling operations led by Afghan engineers. Out of 12 wells in the area, five have now started pilot production.
Authorities described this phase as the beginning of structured use of domestic energy resources, with plans in place to scale up operations.
The government has also signed multiple contracts with both domestic and foreign companies to speed up extraction of oil, gas and minerals. These agreements are part of a push to improve resource management and increase output from basins across the country.
One of the major deals signed in 2023 involved a Chinese company, where Afghanistan’s Taliban-led administration entered into an agreement to develop oil extraction in the Amu Darya basin and set up an oil reserve in northern Sar-e-Pul province. The agreement was signed between Minister of Mines and Petroleum Sheikh Shahabuddin Delawar and an official from the Xinjiang Central Asia Petroleum and Gas Company (CAPEIC).
Now, with early production underway in Jamrad Sai, Afghan officials say attention is on stabilising output and expanding operations. While present production levels are limited, authorities see this as a starting point for longer-term energy development.
Afghanistan has faced years of economic uncertainty, and the oil discovery offers a possible new source of revenue if infrastructure and export routes are developed. Regional energy markets are also dealing with changes as countries adjust supply strategies due to tensions around major maritime routes. This development adds another factor to that situation.
