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 $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. 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. The report covers the period from November 1 to November 30, 2014. During the reporting period, TPAO submitted its progress report on November 1, 2014, summarizing activities conducted between October 23 and October 30, 2014. TPAO also sent a letter to the Afghanistan Petroleum Authority (APA) on November 4, 2014, discussing reasons for delay, contract clarification, actual progress made, and TPAO's work plan. On November 8, 2014, TPAO submitted a mobilization report, and on November 9, 2014, SGGA sent a detailed memo to DG Anwar Aryan describing contract termination options and consequences. The APA procurement committee made a recommendation to continue the contract on November 17, 2014, based on fear of losing the grant and fear of the Asian Development Bank (ADB) not funding the power plant. On November 18, 2014, DM Hares, acting minister, responded to USAID's October 27, 2014, letter of concern about TPAO's progress, indicating that the Ministry prefers the three wells over a reservoir study. An error in the Deputy Mission Director's letter to MoMP indicated that some of the money withdrawn from the drilling grant would be used to fund a reservoir study. On November 30, 2014, a delegation from TPAO met with APA in Kabul, with SGGA attending in an advisory capacity. SGGA warned that the grantor (banker), USAID, was near a decision to withdraw project funding. TPAO asked what it would take to obtain the necessary time extension and SGGA asked what TPAO was proposing to offer in consideration. Clearly shocked that they had never even thought of such a thing, TPAO departed to discuss with senior management and did not return on November 30th. The primary MoMP staff supporting SGDP include Minister of MoMP Mohammad Akbar Barakzai, Director General of APA Dr. Mohammed Anwar Aryan, SGDP Project Manager Zabihullah Sarwari, and other key personnel. SGGA has security, administrative, and translation personnel to support the project.