Saudi Arabia Invests Big in Afghanistan's Oil and Gas Sector

Afghanistan and Saudi Arabia have signed a significant agreement to develop Afghanistan's oil and gas resources. The deal was reached between Delta Energy Group, a Saudi-based independent energy company, and Afghanistan's Ministry of Mines and Petroleum.

The agreements cover an area of approximately 9,000 square miles in western Herat province, where Delta Energy will conduct geological and geophysical studies to determine the commercial viability of hydrocarbon resources. The company also plans to finance a study on natural gas utilization in Herat, including supplies for industry and electricity generation.

A separate agreement establishes a framework for studying a proposed 435-mile gas pipeline, which could create a new domestic and regional energy corridor. Delta Energy estimates that the pipeline alone would require around $10 billion in investment over a decade.