Afghanistan, China to sign first oil contract

Afghanistans Ministry of Mines says it will sign the countrys first oil contract with Chinas state-owned National Petroleum Corporation.A spokesman says Minister Wahidullah Shahrani will ink the accord Wednesday with the director of the Beijing-based company.Surveys conducted by the Soviets in the 1970s have shown that Afghanistan sits on vast mineral wealth. Afghan and foreign companies already have shown interest, notably in its copper, iron and oil deposits.On Monday, The government approved the deal to allow the Chinese firm to work the oil blocks located in the northeastern provinces of Sari Pul and Faryab. The area, known as the Amu Darya Basin, is believed to have reserves amounting to about 87 million barrels of oil.