SGDP Monthly Drilling Operations Progress Report

The project aims to develop the Juma-Bashikurd gas field in Jawzjan Province. Turkish Petroleum Corporation (TPAO) was awarded a contract worth $36,757,766 to drill one new well, Juma #2A, and re-enter two wells, Bashikurd #3 and Bashikurd #9, under the project. The project is funded jointly by USAID and MoMP, with a projected end date of April 30, 2015. The Sheberghan Gas Generation Activity (SGGA) is responsible for monitoring SGDP progress as USAID's implementing partner. This report is required under USAID Task Order No. AID-306-TO-12-00002 Modification 3, Section F, Deliverable 24. During the reporting period of September 1-30, 2014, several activities were performed and milestones achieved. On September 1, 2014, the Afghanistan Petroleum Authority (APA) received satisfactory evidence of insurance from TPAO. On September 5, 2014, APA received a progress report from TPAO highlighting its latest progress on the gas field roads, camp, and drilling locations. However, this work was not yet completed. On September 8, 2014, APA granted commencement to TPAO, although TPAO had actually commenced its road work on March 6, 2014, without permission. On September 10, 2014, TPAO sent a revised contract extension document, which was met with a unilateral extension notice from the Minister of MoMP, extending the time for completion by 30 days to October 10. TPAO subsequently requested longer extensions, citing the need to mobilize its rig from Turkey. In response, SGGA prepared a draft negotiation position for APA, suggesting that APA might require TPAO to pay for a reserve report for Juma-Bashikurd in exchange for a longer extension. SGGA also prepared a draft response letter for APA to reject TPAO's request for additional extension. The project has a contract performance schedule of 270 days, which TPAO has failed to meet. The primary MoMP staff supporting SGDP include the Minister of MoMP, the Director General of APA, the SGDP Project Manager, and several other officials who provide daily interface and administrative support. The project's progress is monitored by SGGA, which is responsible for ensuring that the project is implemented in accordance with the contract requirements. The project's success will depend on the timely completion of the drilling operations and the re-entry of the wells, as well as the provision of adequate insurance and the payment of the contract value.