Afghan hydrocarbons: A source for development or for conflict? A risk assessment of Norwegian involvement in development of the Afghan oil and gas industry

Norad has been engaged in capacity building and provision of technical support to the Afghan Ministry of Mines since 2007. A part of this engagement relates to the development of the Afghan Hydrocarbons Law, and commercialization of gas and oil reserves through an international bidding process. The Afghan oil and gas industry has been in production since the mid 1980s, but is in need of major investments. Afghans interviewed are of the opinion that oil and gas reserves are national property, to be used for the benefit of all Afghans.

 The review has identified a range of risks and challenges to the further process, and Norad is advised to consider: To await further engagement on policy matters until there is further clarity as to how the Government of Afghanistan aims to develop and utilize these resources. But consider to  provide:

• Advice on the political/diplomatic process of negotiating agreements for utilization and division of underground natural resources;

• Assist in training and development of Afghan technical expertise in oil and gas exploration, production and management;

• Assist in the further development of the hydro power and alternative energy sector.