China gets approval for Afghanistan oil exploration bid

China’s rapid economic expansion has resulted in a surge in demand for oil in the country

27 December 2011 Last updated at 02:00
http://www.bbc.co.uk/news/business-16336453

China has gained potential access to millions of barrels of oil after it won approval for oil exploration and extraction in Afghanistan.

The country’s cabinet approved a deal to allow China National Petroleum Corporation (CNPC) to develop oil blocks in the Amu Darya Basin.

The basin is estimated to hold around 87 million barrels of oil.

The deal comes as China is looking to expand its oil resources in wake of a growing domestic demand.

“The Afghan cabinet has ordered mines minister Wahidullah Shahrani to sign an oil exploration contract for Amu Darya with China National Petroleum Corporation,” Afghanistan president’s office said in a statement.

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