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Viewing cable 07KABUL3788, AFGHANISTAN: NEW OIL AND GAS FIELD TENDER EXPECTED IN THREE

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Reference ID Created Released Classification Origin
07KABUL3788 2007-11-09 02:43 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Kabul
VZCZCXRO2381
PP RUEHDBU RUEHIK RUEHPOD RUEHPW RUEHYG
DE RUEHBUL #3788 3130243
ZNR UUUUU ZZH
P 090243Z NOV 07
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 1383
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC 0555
RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHZG/NATO EU COLLECTIVE
RUEKJCS/OSD WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUEABND/DEA HQS WASHINGTON DC
RHMFIUU/HQ USCENTCOM MACDILL AFB FL
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUCNDT/USMISSION USUN NEW YORK 4270
RUEHFR/AMEMBASSY PARIS 2992
RUEHML/AMEMBASSY MANILA 1642
RUEHBY/AMEMBASSY CANBERRA 0285
RUEHOT/AMEMBASSY OTTAWA 1410
RUEHNE/AMEMBASSY NEW DELHI 7168
RUEHJA/AMEMBASSY JAKARTA 0069
RUEHRL/AMEMBASSY BERLIN 2124
RUEHUL/AMEMBASSY SEOUL 0091
RUEHLO/AMEMBASSY LONDON 3778
RUEHKO/AMEMBASSY TOKYO 1967
UNCLAS KABUL 003788 
 
SIPDIS 
 
DEPT FOR SCA/FO, SCA/RA, AND SCA/A (A/S BOUCHER, GASTRIGHT,DEUTSCH) 
DEPT PASS AID/ANE, OPIC 
DEPT PASS USTR FOR GERBER AND KLEIN 
DEPT PASS OPIC FORZAHNISER 
DEPT PASS TDA FOR STEIN AND GREENIP 
CENTCOM FOR CG CFC-A, CG CJTF-76, POLAD, JICENT 
NSC FOR JWOOD 
TREASURY FOR ABAUKOL, BDAHL, AND MNUGENT 
MANILA PLEASE PASS ADB/USED 
PARIS FOR OECD/ENERGY ATTACHE 
OSD FOR SHIVERS, SHINN 
COMMERCE FOR DEES, CHOPPIN, AND FONOVICH 
TOKYO ALSO FOR AID COUNSELOR AANENSON 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958 N/A 
TAGS: ENRG EPET KPWR EAID PGOV AF
SUBJECT: AFGHANISTAN: NEW OIL AND GAS FIELD TENDER EXPECTED IN THREE 
MONTHS 
 
Sensitive but Unclassified 
 
1. (SBU) The Afghan Ministry of Mines intends to issue a tender for 
exploration of several blocks of the Amudarya Oil and Gas basin in 
north-western Afghanistan in February or March 2008 Post learned at 
the recent Oil and Gas Working Group meeting November 8. Note: The 
Amudarya basin is also where the fields for the proposed Sheberghan 
gas powered plant are located.  However, the Sheberghan fields are 
not part of this tender.  End Note.  According to Norwegian Agency 
for Development and Cooperation (NORAD) consultants, the exploration 
and eventual resource extraction will occur under the rubric of 
Production Sharing Agreements (PSA)'s negotiated with the IRoA, 
paving the way for private sector investment in Afghanistan's 
natural resources sector. 
 
2. (SBU) Norway and the World Bank have also been working with the 
Ministry of Mines to draft a Hydrocarbons Law and accompanying 
regulations to ensure "rules of the game" are in place for the 
sector as soon as possible.  After a rewrite, the law is currently 
under review and it and its accompanying regulations, are expected 
to be ratified in the near future.  It remains unclear however if 
the ratification will occur prior to March 2008.  Lack of 
ratification will not delay issuance of the tender, but may impact 
contract negotiation and/or exploration timelines. 
 
3. (SBU) According to NORAD and WB reps who recently met with him, 
Minister of Mines Adel is also eager to include oil exploration in 
the northeastern Afghan-Tajik basin in the proposed tender.  He 
appears to be motivated by recent press reports claiming Tajikistan 
has retained the services of Tethys Petroleum to explore its half of 
the basin.  NORAD consultants tell us it is unlikely the tender will 
be expanded and cite two reasons.  First, NORAD, not the Ministry 
has the authority to decide if the tender's scope can or will be 
expanded.  Second, NORAD believes that there is insufficient time to 
analyze and properly package the available Afghan-Tajik basin data 
in time for a March 2008 tender announcement.  Post will continue to 
report developments as they occur.  Note: Post's Oil and Gas Working 
Group meets approximately every six weeks and is attended by 
representatives of the Ministry of Mines, World Bank, Norwegian 
Embassy and its development arm NORAD, as well as ECON, USAID and 
the U.S. Embassy's Afghanistan Reconstruction Group (ARG). End Note. 
 
 
Wood