Saudi group signs $200m Afghanistan oil, gas deal

By the Editorial Team · Wednesday, September 9, 2026

Afghanistan has signed a $200 million deal with Saudi Arabia’s Delta International Energy to explore and extract oil and gas over a 22,000 square kilometer area in the west of the country. This long-term project aims to boost Afghanistan’s energy independence and economic growth while signaling renewed international investment interest despite ongoing challenges.

Afghanistan has finalized a $200 million agreement with Saudi Arabia’s Delta International Energy to conduct exploration and extraction of oil and gas across a vast 22,000 square kilometer basin in the country’s west. The contract was signed on Monday in Kabul by Afghanistan’s Mines and Petroleum Minister Hedayatullah Badri and Delta CEO Shaher Al-Taqi, with senior Taliban officials and former U.S. special representative for Afghanistan Zalmay Khalilzad in attendance.

The agreement covers seven blocks within the Kushk-Timpul basin, which stretches across Herat and Badghis provinces. The exploration phase of the contract is scheduled to last eight years, followed by a 25-year extraction period. Afghan officials have expressed optimism that the project will help the country achieve energy self-sufficiency. Minister Badri emphasized the government’s intention to leverage its natural resources to stimulate economic growth, enhance public welfare, and generate employment opportunities.

Afghanistan’s economy has faced ongoing challenges since the withdrawal of most foreign partners in 2021, including widespread unemployment and poverty. Khalilzad characterized the deal as a sign that Afghanistan is open for business and highlighted its potential to position the country as a significant source of natural resources for the global market, particularly in South Asia.

Local analysts have also noted the broader significance of the agreement beyond immediate economic benefits. Sami Wahidi, a Kabul-based analyst and former engineer at the Ministry of Energy, described the deal as a morale booster for Afghanistan, illustrating that international investors continue to see potential in the country’s resources. Wahidi added that, in the long term, the initiative could shift Afghanistan’s regional status from a conflict-prone, landlocked nation to a strategically important energy hub.

While the infusion of investment and anticipated hydrocarbon production offer potential economic uplift, the project’s long timeline means initial impacts will primarily be psychological and symbolic. However, the collaboration marks a notable development amid ongoing efforts to stabilize Afghanistan’s economy and attract foreign investment under the current government.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.