Sheberghan Gas Generation Activity (SGGA) Monthly Report April 1 – April 30, 2016

The project is managed by Advanced Engineering Associates International, Afghanistan, and is supported by the Ministry of Mines and Petroleum (MoMP). The SGGA Monthly Report for April 1-30, 2016, highlights the project's progress and challenges during the reporting period. The report is divided into four sections: Drilling Contract Management Support, SGDP Natural Gas Development Support, Capacity Development, and Monthly Expenditures. In the Drilling Contract Management Support section, the report notes that the project continued to advise MoMP's Zabih Sarwari on efforts to close out the TPAO drilling contract. The project team drafted a response to TPAO's letter claiming offset to delay damages for MoMP delays and provided the required certification letter to USAID for disbursement of grant funds. The SGDP Natural Gas Development Support section reports on the project's progress in evaluating gas field data and resource estimates. McDaniel submitted draft contingent resources reports for the Khoja Gogerdak and Yatimtaq fields, and the project team provided additional information and data to support the reports. The project also began efforts to collect data on the Juma-Bashikurd Field to submit to McDaniel for a quote to prepare a reservoir study. The Capacity Development section notes that the project completed the organization and cataloging of core samples held by the Oil and Gas Survey in Sheberghan and began work on the OGS core sample kept in its Mazar-e-Sherif warehouse. The project also awarded a subcontract to Baker Botts LLP for the Public-Private Partnership for Gas Gathering and Processing Construction and Operation of a Sheberghan Gas Processing Plant. The report also mentions several meetings and challenges faced by the project team during the reporting period. The project team met with MoMP officials to discuss current gas production in Sheberghan and learned that the current production is less than 500 MCM/day, which is much lower than previously thought. The project team also faced challenges in collecting production data from MoMP units, which intentionally or unintentionally withheld the data despite Ministers' Directives to provide all data. The project's plans for the next month include continuing to try to encourage and support Sarwari in concluding the TPAO drilling contract, while making clear that the closeout is the responsibility of the Ministry and that SGGA will not certify completion of work for disbursement of USAID grant funds until all contract requirements are fully completed.