Afghan consortium invests $400 million to enhance oil refining capacity

KABUL (TOLONews): A number of Afghan businessmen are establishing a production consortium with a $400 million investment to enhance growth and achieve self-sufficiency in oil refining.

Members of this consortium said in a press conference in Mazar-e-Sharif, the provincial capital of Balkh, that the companies involved in this process have the capacity to refine 4,300 tons of oil per day.

The consortium members have previously invested in oil refining in the northern region.

Abdul Rashid Salar, a technical advisor to the consortium, said that the creation of this consortium will provide job opportunities for more than 3,000 people and facilitate the production of high-quality diesel, gasoline, motor oil, hydraulic oil, and asphalt.

Abdul Rashid Salar said: “This refinery, with a $400 million investment, of which $87 million has already been invested and the remaining $323 million will be newly invested, will be established in four phases over a period of one to five years.”

Officials from oil refining companies in the north said at this press conference that they have the capacity to refine 4,300 tons of oil per day but are facing a shortage of raw materials. They have asked the interim government to provide more resources to these companies.

“Without the comprehensive support and backing of the Islamic Emirate, it is impossible to advance this large-scale work alone. The doors of the consortium are sincerely and honestly open to all companies and individuals who work for the country’s self-sufficiency and economic prosperity,” said Sayed Karim Hashimi, a businessman.

“Currently, Afghanistan’s extraction is approximately 1,100 tons, and our factories have the capacity to produce 4,300 tons. We request the government extract more oil wells to meet the companies’ needs,” said Momin Ziaei, another businessman.

Noorulhadi Abu Edris, the deputy governor of Balkh, said that the Islamic Emirate is committed to supporting any commercial activities within the country.

The deputy governor of Balkh added: “You see that our oil and gas companies and factories are being built to standards within the country, and the quality of our oil products should not be lower than those abroad so that we should have exports instead of imports.”

Despite Afghanistan’s vast oil reserves, the country imports nearly 90% of its required oil from other countries. Global developments have always affected the increase or decrease in oil prices.