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Afghanistan's Taliban-led government started extracting oil from wells in the north of the country.

"Priority will be given to the employment of technical and non-technical staff and the reconstruction of the mine using the revenues of Sar-e-Pul," acting Mines and Petroleum Minister Sheikh Shahabuddin Delawar, Azernews reports.

The Qashqari basin has 10 wells and 200 tons of oil is being extracted from nine, the Kabul Times reported, citing a statement by the Mines and Petroleum Ministry.

Officials hope to increase the extraction capacity from Qashqari to more than 1,000 tons.

Following a return to power in Kabul in 2021, the Taliban signed an agreement last year with a Chinese company to extract oil from Sar-e-Pul.

In January, the interim Afghan Taliban government also signed a 25-year contract with a Chinese firm to extract oil from the Amu River basin and develop an oil reserve in the north.

According to the contract, the Chinese company will invest $150 million in the first year and increase to $540 million in three years.

Afghanistan is estimated to be sitting on untapped resources of more than $1 trillion, which has attracted the interest of foreign investors.

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