The deal will allow the Chinese firm to work oil blocks in the northeastern provinces of Sari Pul and Faryab. The area, known as the Amu Darya River Basin, is believed to have reserves of about 87 million barrels of oil.
Minister Wahidullah Shahrani will sign the accord with the director of the Beijing-based company, ministry spokesman Jawad Umer said.
The government said the contract with CNPC will be the first with a foreign company to exploit oil reserves in Afghanistan. It has been keen to develop a modest oil-extraction and refining capability for the landlocked nation, which is entirely reliant on fuel imports from neighboring Iran and Central Asian nations.
The provinces of Sari Pul and Faryab are located hundreds of miles from the centers of fighting in the east and southeast and are considered relatively safe. As a result, the US-led NATO force has already transferred or is turning over responsibility for security in large parts of the region to the Afghan army and police.
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. But with poor infrastructure and security problems stemming from the 10-year war, most foreign mining companies have shied away from firm commitments.