Saudi Energy Group Signs Historic $50 Billion Energy Agreements with Afghanistan
By Voice For All Agency KABUL – In one of the largest foreign energy investments in Afghanistan in decades, Saudi-based Delta International Group and Delta Energy Group have signed a series of landmark agreements with Afghanistan’s Ministry of Mines and Petroleum. These agreements cover oil and gas exploration in Afghanistan’s western regions, including detailed work in the Kushk and Tirpul blocks of Herat province. The signing ceremony took place in Kabul on September 7, 2026, and was attended by high-ranking Afghan officials, including the Minister of Mines and Petroleum, as well as international figures such as Zalmay Khalilzad, the former US Special Representative for Afghanistan.
The gathering underscored the deal’s geopolitical significance and reflected broader regional interests. Three-Part Energy Program: According to a detailed statement from Delta Energy, the entire initiative comprises three major components: 1. The Kushk-Tirpul Contract Area: Covering approximately 23,317 square kilometers (9,000 square miles) in Herat province, Delta will conduct extensive geological and geophysical studies, seismic surveys, exploratory drilling, and reservoir evaluations to assess the hydrocarbon potential and decide on commercial extraction prospects under an Exploration and Production Sharing Contract (EPSC). 2. Herat Gas Utilization Program: Delta will finance comprehensive feasibility and technical studies aimed at utilizing natural gas from the region to support Herat Industrial Park, the city of Herat, and surrounding districts. The project aims to explore applications for industrial use and power generation, potentially boosting local energy capacity. 3. CentGas – Corridor of Prosperity: This framework agreement envisions a detailed feasibility study for a proposed 700-kilometer (435-mile) gas transmission pipeline, extending from a receipt point near Guzara district in Herat to a delivery hub close to Spin Boldak in Kandahar. The pipeline aims to establish a new domestic energy corridor capable of regional energy transit, fostering economic development.
The integrated program is estimated to require an investment of about US$50 billion over 25 years. This projection remains subject to successful exploration results, comprehensive technical and environmental studies, securing financing, and obtaining necessary regulatory approvals. A New Chapter? This agreement comes at a time when Afghanistan has remained largely isolated from global capital markets and foreign direct investment since 2021. If proven commercially viable, the discovery of significant reserves could dramatically change Afghanistan’s energy landscape and address chronic shortages. For Saudi Arabia, this venture signifies an expansion of its strategic energy influence into Central and South Asia, aligning with its broader regional economic objectives. Specific details on production-sharing percentages, fiscal terms, and contractual arrangements have not been publicly disclosed.
Both parties have emphasized that project development remains contingent on further feasibility assessments and environmental impact evaluations. Voice For All has reached out to Delta Energy Group for additional comments regarding project timelines, community investment plans, and potential local benefits. About Delta: Delta Energy Group is a Saudi-based independent energy exploration and development company, specializing in oil and gas extraction, natural gas infrastructure, and pipeline projects aimed at regional energy integration.
