SGGA Monthly Drilling Operations Progress Report

AID-306-TO-12-00002. The project aims to develop the Juma-Bashikurd Field in Jawzjan Province, Afghanistan. Turkish Petroleum Corporation (TPAO) was awarded a contract worth USD 36,757,766 to drill one new well, Juma No. 2A, and re-enter one well, Bashikurd No. 3. The Bashikurd No. 3 well was plugged and abandoned in January 2016 after the collapse of newly installed casing from 2837 to 2949 meters from the surface. The casing collapse was caused by movement of a salt interval in the Gourdak Formation. Prior to casing and cementing, the well reached a total vertical depth of 3442 meters subsurface, penetrating the target Lower Kugitan Formation. Log analysis showed gas present and permeability of eight to ten percent, indicating better prospects for commercial production than previously predicted. TPAO began demobilization following completion of plugging operations on December 13, 2015. As of the date of this report, TPAO continues to remove equipment from the drill site and to attempt to clear its equipment through customs. The required tax exemption certification for clearance was received by the Ministry of Mines and Petroleum on January 24, but SGGA was not informed by MoMP when the letter was forwarded to TPAO. TPAO reported that 43 loads were still awaiting customs clearance on February 5, and expects to have completed demobilization from the field around February 15. Contract closeout preparations are underway, with SGGA providing MoMP's project manager with a comprehensive listing and explanation of the steps required by the TPAO contract and USAID grant agreement to close out the TPAO contract and for the grant funding to be disbursed. A draft letter was sent to MoMP's project manager on January 13, describing the contract closeout process. Meetings and telephone discussions have been held to discuss the specific steps needing to be taken. The Sheberghan Gas Generation Activity (SGGA) is responsible for monitoring SGDP progress. The project end date is July 31, 2016. The contract is funded jointly by USAID and MoMP as agreed under SOAG Implementation Letter No. 45-01 and subsequent implementation letters. The contract requires TPAO to drill one new well, Juma No. 2A, and re-enter one well, Bashikurd No. 3, in the Juma-Bashikurd Field in Jawzjan Province.