SGGA Monthly Report: March 1 – March 31, 2016

The project is managed by Advanced Engineering Associates International, Inc. (AEAI) under Contract No. EPP-I-00-03-00004-00 and USAID Task Order No. AID-306-TO-12-00002. SGGA's drilling contract management support involves closeout of the TPAO drilling contract, which has been delayed due to the resignations of Minister Daud Saba and APA Director General Qutbuddin Qaeym. The Ministry of Mines and Petroleum (MoMP) has failed to prioritize the necessary steps to conclude the contract, despite reportedly spending a week in Sheberghan dealing with TPAO on the transfer of surplus equipment and materials. SGGA has recommended that MoMP and TPAO utilize the drilling contract closeout memorandum as a guide for concluding remaining drilling contract open items. Environmental compliance inspections were not fully completed due to security threats in the Bashikurd Field area, where insurgents were reported to be present. Requests for support to the local police and army commands were refused on the ground that all available personnel had been assigned to the use of Vice President Dostum while he was in the north. SGGA has also been providing support for the Sheberghan Gas Development Project (SGDP) natural gas development. Seven Field Data Evaluation and Resource Estimates have been completed, including reports for the Gerquduq, Khoja Gogerdak, and Yatimtaq fields. McDaniel Associates has submitted a contingent resources report for the Gerquduq Field, and reports for the Khoja Gogerdak and Yatimtaq fields are being prepared. The Juma/Bashikurd Reservoir Study is ongoing, with SGGA agreeing to approach USAID to try to solve the issue of obtaining a quote for the study from McDaniel Associates. USAID is preparing an Implementation Letter under which SGGA would obtain a quote for the reservoir study and, if the quote is acceptable to all parties, withhold the agreed amount, amend the McDaniel scope of work, and pay for the work through the SGGA McDaniel subcontract. In the next month, SGGA plans to meet with Sarwari to determine what additional technical advice needs to be provided by SGGA for his closing out the TPAO contract. SGGA will also continue to provide support for the SGDP natural gas development, including completion of the contingent resources reports for the Khoja Gogerdak and Yatimtaq fields. The project schedule indicates that the next major milestones include completion of the TPAO drilling contract closeout, completion of the Juma/Bashikurd Reservoir Study, and completion of the contingent resources reports for the Khoja Gogerdak and Yatimtaq fields.