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

The project is funded by the United States Agency for International Development (USAID) and is jointly sponsored by USAID and the Government of the Islamic Republic of Afghanistan. The project's primary objective is to support the development of the Sheberghan Gas Development Project (SGDP) by providing technical assistance and management support. The SGGA project team, led by Advanced Engineering Associates International, Inc., has been working closely with the Ministry of Mines and Petroleum (MoMP) and the Turkish National Petroleum Corporation (TPAO) to facilitate the development of the SGDP. One of the key activities undertaken by the SGGA project team is the management of the drilling contract between MoMP and TPAO. The contract was initially set to expire in December 2014, but MoMP and TPAO agreed to extend the contract period of performance to August 2015 in return for a full reserve study on Juma-Bashikurd by a third party. However, the extension of the contract has been hindered by various challenges, including customs clearance issues. TPAO has been attempting to clear customs for its equipment and materials, but has faced difficulties due to inadequate documentation and expiration of driver visas. The SGGA project team has been providing advice to MoMP on how to mitigate these problems, including recommending alternative approaches such as entry under bond or providing a copy of an extension agreement to customs officials. The SGGA project team has also been working to address the impact of the recent budget cuts on the Afghanistan Petroleum Authority (APA). The budget cuts resulted in the elimination of approximately 72 APA contract employees, leaving only around 35 employees stationed at APA. The SGGA project team has been providing support to APA in navigating this transition and has recommended alternative approaches to Z. Sarwari of MoMP. In terms of project schedule, the SGGA project team has been working to ensure that the project stays on track despite the challenges faced. The project team has been monitoring the entry of TPAO equipment and materials into the customs area and providing advice to MoMP as requested. The team has also been refreshing MoMP's memory regarding its required actions for monitoring, reporting, and certifying in regard to the TPAO drilling contract. The SGGA project team has been working closely with various stakeholders, including USAID, MoMP, APA, and TPAO, to facilitate the development of the SGDP. The team has been providing technical assistance and management support to ensure that the project stays on track and meets its objectives. Despite the challenges faced, the SGGA project team remains committed to supporting the development of the SGDP and ensuring that the project's objectives are met.