Sheberghan Gas Generation Activity (SGGA) Monthly Report June 1 – June 30, 2014

The project is funded by the United States Agency for International Development (USAID) and is being implemented in collaboration with the Government of the Islamic Republic of Afghanistan. Drilling contract management support is a key component of the SGGA project. In June 2014, the project team drafted two notices to the Turkish National Petroleum Corporation (TPAO) in coordination with the Afghanistan Petroleum Authority (APA). The notices required TPAO to provide an empowered contractor's representative and warned that transiting Iran with 235 trucks is not compliant with the contract. The project team also provided summaries of TPAO's road work and camp logistics support requirements to APA, as requested by Z. Sarwari. The project team reviewed TPAO's progress report, which included subcontracts, a revised schedule, and intimations that the new schedule is in response to delay by APA to provide a location for the Juma 2A well. The final Juma 2A location is located only 600 meters from the TPAO drilling camp and was provided during the period that TPAO's civil works subcontractor was still onsite working on other roads and drilling locations. The project team drafted and sent to APA a contract notice rejecting the new TPAO schedule and rejecting, in advance, any claims for schedule delay. The project team also drafted and sent to USAID for consideration a letter that would notify APA of USAID's suspension of funding pending review of whether TPAO's schedule delays affect the ability to complete the Sheberghan Gas Development Project (SGDP) objectives. Additionally, the project team drafted a notice that APA could use to notify TPAO to suspend operations in light of USAID's suspension of funding. The letter is being held by SGGA pending USAID's decision on suspending funding. Capacity development is another key component of the SGGA project. In June 2014, the project team prepared a comprehensive briefing document for USAID's use in evaluating TPAO's lack of progress and non-conforming schedules. The briefing document includes a summary of activity on the TPAO contract, with copies of all contract-related communications, progress reports, letters, and schedules tracking TPAO's lack of progress. The project team also sent a brief outline summary of options for and possible effects of terminating the TPAO contract to USAID. The project team also prepared a drilling contract historical timeline in PowerPoint and Word and shared it with USAID for use in tracking SGDP's drilling progress relative to Asian Development Bank's drilling project. On June 30, 2014, TPAO submitted its final progress report of the month, which continued to focus entirely on road construction and camp site preparations, which are nearly complete besides a 600-meter road to the new Juma well #2A site and final rig pad work.