Sheberghan Gas Generation Activity (SGGA) Monthly Report

The project is managed by Advanced Engineering Associates International, Inc. and is supported by the Ministry of Mines and Petroleum (MoMP). The SGGA Monthly Report for February 1-29, 2016 highlights the project's progress in drilling contract management support and natural gas development support. In the drilling contract management support section, the report notes that the MoMP project manager, Z. Sarwari, continued to face challenges in closing out the TPAO drilling contract. Despite SGGA's recommendations, Sarwari failed to issue an Engineer's Letter to allow payment of a nine-month past-due TPAO invoice for mobilization. SGGA also contracted with Credible Construction Company to conduct a final environmental inspection on the Juma-Bashikurd work locations, as Sarwari was unable or unwilling to task MoMP staff to carry out the inspection. The report also highlights the challenges faced by SGGA in connection with MoMP's efforts to close out the TPAO drilling contract. The most serious challenge was Sarwari's proposal to attempt to evade the payment of finance charges of $33,000 due to TPAO. SGGA believes that this proposal reflects the failure of MoMP to adapt to commercially-oriented and transparent approaches to the Ministry's business and to avoid accountability. In the natural gas development support section, the report notes that SGGA made significant progress in data evaluation and reserves estimates for up to seven Sheberghan area gas fields. An engineering services subcontract and confidentiality agreement were signed with McDaniel & Associates Consultants Ltd. of Calgary, and data uploading to McDaniel began in field priority order. The report also notes that six proposals were received in response to SGGA's Public-Private Partnership (PPP) RFP, and a preferred offeror was selected. Discussions with the preferred offeror on subcontract terms and conditions began. The report concludes that SGGA will continue to assist MoMP in completing the closeout of the TPAO drilling contract in compliance with the contract and acceptable business practices. The project will also complete the environmental inspection of the Juma-Bashikurd Field work locations, prepare the inspection report, and advise MoMP of any costs for incomplete cleanup work that should be recovered from TPAO.