Kabul, June 17 — The Ministry of Mines and Petroleum has officially terminated the 25-year oil deal with Afchin Company. The project, focused on the Amu Darya oil block, collapsed due to multiple contract violations.
According to officials, joint committees from various ministries reviewed the contractor’s performance. Their findings revealed repeated breaches of key terms. Afchin had failed to meet technical, legal, and operational obligations.
As a result, the Ministry cited Proposal No. 5188 (dated 1446/12/1) and Decree No. 6856 (dated 1446/12/5) from the Prime Minister’s Office to authorize termination.
Ministry Seeks Fresh International Oversight on Oil Deal
Following the termination, the Ministry invited international consulting firms to submit Expressions of Interest (EoI). These firms will conduct three main tasks:
- Legal evaluation of the terminated contract
- Technical assessment of the Amu Darya site
- Financial settlement with Afchin
Officials stressed that future deals must meet international standards. Transparency, accountability, and performance will guide all new partnerships. The Ministry also emphasized the need for stronger legal checks to avoid similar issues.
Meanwhile, experts see this step as a shift in Kabul’s foreign investment policy. Authorities now aim to attract credible, compliant partners through open bidding and strict monitoring.
Energy analysts believe the project still holds value. However, consistent contract violations made it unsustainable under current terms. New investors may get a chance if the review clears the site for re-tendering.
Moreover, the government’s bold action sends a strong message. It underscores the importance of contract enforcement in Afghanistan’s developing energy sector, especially in light of the recent oil deal. Stakeholders now await the outcome of the evaluations and possible penalties..
In this evolving investment environment, the case of Afchin serves as a reminder—contract violations come at a cost.
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