Sheberghan Gas Generation Activity (SGGA) Monthly Report August 1 – August 31, 2014

The project is supported by the United States Agency for International Development (USAID) and the Government of the Islamic Republic of Afghanistan. The SGGA Monthly Report for August 1-31, 2014, highlights the project's progress and challenges during this period. Drilling Contract Management Support was a key focus area for the SGGA project team during August 2014. The team reviewed a letter from Turkish National Petroleum Corporation (TPAO) to the Ministry of Mines and Petroleum (MoMP) on August 1, 2014, which included insurance documents and a new schedule. However, the team found all documents non-compliant with the contract and prepared a new response letter for the Afghanistan Petroleum Authority (APA) to send to TPAO. The APA sent the response letter to TPAO on August 6, 2014. The project team also made final tweaks to the July Drilling Operations Report and submitted it to USAID. Additionally, they prepared a log for APA letters to TPAO, along with reasoning for the letters, to demonstrate proactive actions to influence TPAO towards compliance with the contract. The team confirmed the validity of TPAO's renewed performance security with Habib Bank and reviewed TPAO's letter to MoMP sent on August 11, 2014, preparing analysis for APA and two letters for it to send to USAID and TPAO to request a US-flag vessel waiver from USAID and to remind TPAO that approval of its mobilization remains on hold until it provides proof of insurance. The project team met with Z. Sarwari, MoMP's Sheberghan Gas Development Project (SGDP) Project Manager, on several occasions during August 2014 to discuss TPAO's progress and required actions to respond to the company's documents. The team also discussed the need for Z. Sarwari to send a letter to TPAO explaining that commencement cannot be granted until TPAO provides evidence of insurance. Security remained a concern in the Sheberghan region during August 2014. TPAO's security personnel in Sheberghan received some of the salaries owed to them but still had yet to receive one month's back pay. Insurgents attempted to break out of the Sheberghan prison on August 13, 2014, but Afghan National Security Forces contained the attempt without reporting any casualties. Intelligence reports indicated that insurgents gathered in the Sheberghan area while plotting attacks against Afghan National Security Forces, but SGGA's security specialists did not deem activity in these areas a threat to SGDP activities at this stage. The project schedule as of May 31, 2014, is included in the report, highlighting the project's progress and milestones achieved. The report also includes acronyms and abbreviations used in the project, providing a reference for readers unfamiliar with the terminology.