Uzbek company to invest nearly $1 billion in Afghanistan’s energy sector over 10 years

On October 10, Afghanistan’s Ministry of Mines and Petroleum signed a contract with an Uzbek company (the name of the company is not mentioned) for gas exploration and production at the Tuti-Maidan gas field in Jawzjan province, located in northern Afghanistan. The agreement was formalized in the presence of Bahodirjon Sidikov, Chairman of Uzbekneftegaz.

The contract, which spans 10 years, outlines that the Uzbek investor will initially contribute $100 million in the first year, with the total investment expected to reach nearly $1 billion over the duration of the agreement. In the initial two years, the Uzbek company plans to generate 100 MW of electricity using the gas extracted from the Tuti-Maidan field.

Afghanistan’s Minister of Mines and Petroleum, Hidayatullah Badri, highlighted the importance of the project, noting that the gas reserves at Tuti-Maidan cover an area of approximately 7,000 square kilometers. The initiative is expected to significantly address the country’s energy needs, boost national income, and create new jobs.

Ismatulla Irgashev, Special Representative of the President of Uzbekistan for Afghanistan, emphasized the importance of such investments in improving Afghanistan’s economic conditions and reducing unemployment. "We aim to unlock Afghanistan’s economic potential to create jobs for millions of Afghans. Our goal is to support the country’s economic revival and enhance the quality of life for its people," Irgashev stated.

This deal follows other recent ventures by Uzbek companies interested in Afghanistan's natural resources. In May, Eriell Group, an Uzbek oil and gas service company, expressed interest in exploring Afghanistan’s oil fields.