Since the Taliban took over control of Afghanistan in 2021, this would be the first significant energy extraction arrangement with a foreign company.
The 25-year agreement highlights China’s economic presence in the area.
Officials from the Taliban said on Thursday that security personnel had attacked members of the Islamic State group who had assaulted a guesthouse frequented by Chinese businessmen.
The Taliban reported that eight IS members were killed and numerous more were detained.
At least three individuals were killed and 18 others were hurt in the Kabul Longan Hotel bombing in December, including five Chinese nationals.
According to Taliban spokesperson Zabihullah Mujahid, the oil extraction agreement will allow Xinjiang Central Asia Petroleum and Gas Company (CAPEIC) to conduct oil drilling in the Amu Darya basin.
At a press conference in the Afghan capital of Kabul, Wang Yu, China’s ambassador to Afghanistan, said, “The Amu Darya oil contract is a significant enterprise between China and Afghanistan.”
A copper mine in the country’s east may be operated by a state-owned enterprise in China.