SGDP Monthly Drilling Operations Progress Report

The project aims to develop the Juma-Bashikurd Field in Jawzjan Province, with a projected end date of April 30, 2015. Turkish Petroleum Corporation (TPAO) was awarded a US$ 36,757,766 contract on December 14, 2013, to drill one new well, Juma #2A, and re-enter two wells, Bashikurd #3 and Bashikurd #9. As of the end of the reporting period, TPAO has consumed approximately 96 percent of its 270-day contract time for completion period and is behind the contract schedule by many months. Drilling operations preparation progress this period included several key events. On August 1, 2014, TPAO submitted a letter with attachments, including a new work schedule that slipped their completion date until June 15, 2015. The Afghanistan Petroleum Authority (APA) replied to TPAO on August 6, 2014, rejecting the new schedule extension and reminding TPAO of the need to renew their performance security. TPAO submitted a follow-up letter on August 11, 2014, addressing several issues, including the late coordinates for locating Juma well #2A and the unavailability of US flag vessels to cross the Caspian Sea. APA considered TPAO's letter on US flag vessel unavailability as a request for waiver and sent a letter to USAID requesting a waiver of the US flag vessel requirement. TPAO submitted a short letter on August 14, 2014, requesting permission to commence mobilization. On August 16, 2014, TPAO submitted its first progress report in approximately a month, indicating that rig/camp construction at Juma 2A is 60% complete and 20 days from completion. TPAO also renewed their performance security through July 2015. Z. Sarwari and Deputy Minister Durani traveled to Sheberghan to personally inspect road work and meet with TPAO representatives. The project's implementation is being monitored by the Sheberghan Gas Generation Activity (SGGA), which is responsible for ensuring that TPAO meets the contract requirements. The project's progress is being tracked through various reports and meetings, including the submission of progress reports by TPAO and the review of these reports by APA and USAID.