Afghanistan, China sign first oil contract. KABUL, Afghanistan – Afghanistan's government signed a deal Wednesday with China's state-owned National Petroleum Corporation, allowing it to become the first foreign company to exploit the country's oil and natural gas reserves.
The contract, which covers the northeastern provinces of Sari Pul and Faryab, is the first of several such blocks to be put on the market in coming months, Afghan Minister of Mines Wahidullah Shahrani said during the signing ceremony. Bidding information for blocks in neighboring Balkh province will be released at end of February, and for the western Herat province by next summer, he said. The ministry listed the initial value of the project with CNPC as $700 million.