Uzbekistan has struck a deal with Afghanistan to process the country’s crude oil, Uzbek media reported Tuesday.
According to reports, Afghanistan’s crude oil will be transported by rail from Hairatan land port to Uzbekistan’s Fergana refinery.
The first shipments have reportedly already been dispatched.
Sources told Uzbek media that 100,000 metric tons of crude oil would be processed under the deal.
Talks between the Islamic Emirate and Uzbekistan have been ongoing for months amid efforts by the IEA to become self-sufficient.
The IEA has been trying to kickstart production since 2022.
Last year, China’s Central Asia Petroleum and Gas Co., or CAPEIC – based in China’s western Xinjiang region – signed a major oil extraction contract with the Islamic Emirate, pledging to invest $540 million in crude oil production by 2026.
The Fergana refinery is the only one in Uzbekistan with the technical ability to process Afghan crude oil, sources said.