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| China gets approval for Afghanistan oil exploration bid | China gets approval for Afghanistan oil exploration bid |
| (40 minutes later) | |
| China has gained potential access to millions of barrels of oil after it won approval for oil exploration and extraction in Afghanistan. | 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 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 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 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. | "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. |
| 'Taking a punt' | |
| The state-owned CNPC will carry out the oil exploration and extraction with a local partner, the Watan Group. | |
| While there has been a lot of talk about the potential of natural resources in Afghanistan, analysts said that it was too early to predict the profitability of the venture. | |
| "To a certain extent they are taking a punt," Tony Regan of Tri-Zen, a Singapore-based consultancy, told the BBC. | |
| Mr Regan explained that CNPC will have to spend a considerable amount of money to explore the basin before it can actually find out about the amount of oil that may exist there. | |
| "It is about five to ten years before they can get a feel of what is under the ground and start commercially producing it," he added. |