New Oil Discovery in Afghanistan: Looking at Increased Investor Interest and the Geo-Political Implications

Summary

The recent oil and gas discoveries in Afghanistan have increased interest about the hydrocarbon potential of the country. The 1.8 billion barrels of oil discovery announced by the Ministry of Mines in Afghanistan has drawn investors’ attention towards the hidden potential the country has. This discovery is in addition to the discoveries during the Soviet Union’s invasion of the 1970s-1980s. Recently, the Ministry of Mines of Afghanistan announced that the country’s mineral potential is $3 trillion and may be more. Going forward, this may reduce Afghanistan’s financing needs from abroad.

Scope

- Analyses the impact of discovery of 1.8 billion bbl of oil reserves and the earlier findings on Afghanistans economy, the challenges faced, Anlayses Major challenges faced by the country, and the Geo-political impact of neighbouring countries and of the countries looking forward to tap the petroleum potential of Afghanistan.

Reasons to buy

- Understanding the oil and gas potential of Afghanistan, challenges faced by the country and geo-political implication in light of the discovery of 1.8 billion bbl of oil
Keywords
Afghanistan, oil, oil disovery, Geo-Political, 1.8, TAPI, Balkh, Sheberghan, Balk, Geology, Soviet, Tajik, Amu Darya, Jangalikalan, Juma, Bashikurd, Kashkari, USGS, License Blocks, Land-Locked, Minerals, Financing Needs, Infrastructural Facilities, Russia, China, India, Pakistan, US, Aynak

1 1
1.1 List of Figures 1
2 Summary 1
3 New Oil Discovery in Afghanistan: Looking at Increased Investor Interest and the Geo-Political Implications 2
3.1 Oil Deposits Estimated to be Around 1.8 Billion Barrels Discovered in Northern Afghanistan 2
3.2 Major Challenges May Delay Any Significant Development 3
3.3 Afghanistan’s Initiatives To Develop Its Mining Sector 4
3.4 Current Oil Discovery To Provide Financial Respite 7
3.5 The Boom May Turn Out To Be A Curse As The Wealth May Reach The Wrong Hands 8
3.6 Geo-Political Implications Of This Discovery May Be Far-Reaching As the Ground Situation In Afghanistan Could Get Worse 9
3.7 Future Plans Are In Place For The Country As It Looks To Exploit Its Resources 10
3.8 How the Situation May Evolve for the Country in the Short-to-Medium Term? 10
4 Appendix 11
4.1 Methodology 11
4.2 Contact Us 12
4.3 Disclaimer 12
1.1 List of Figures
Figure 1: Afghanistan, Balkh and Sheberghan Province 2
Figure 2: Afghanistan, Oil and Gas Fields and Generalized Geology 2
Figure 3: Afghanistan, License Blocks 3
Figure 4: Afghanistan, Areas of Taliban Insurgency, January - August 2009 4
Figure 5: Afghanistan, Deployment of International Troops 4
Figure 6: Trans Afghanistan Pipeline Project 6
Figure 7: Afghanistan, Tectonic Map, Aynak Copper Mine 6
Figure 8: Afghanistan, Opium Cultivation 2005-2009 7
Figure 9: Transparency International’s (TI) 2009 Corruption Perceptions Index 9
Figure 10: Non-Fuel Mineral Resource Map of Afghanistan, USGS 10