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

The project is implemented by Advanced Engineering Associates International, Afghanistan, and is supported by the Ministry of Mines and Petroleum (MoMP). The SGGA Monthly Report for June 2016 highlights the progress made in various areas of the project. In the area of drilling contract management support, the report notes that the parties involved, including TPAO and MoMP, made some progress in resolving differences on the final payments and requirements for the closeout of the MoMP-TPAO services contract. However, the parties were still substantially apart on the amount of delay penalties owed by TPAO and TPAO's claims for compensation for delays allegedly caused by MoMP. The report also notes that MoMP was unable to prepare and issue a request for proposals for a reservoir study of the Juma-Bashikurd Field, as required by Amendment 1 to the MoMP-TPAO services contract. In response, USAID agreed to add and pay for a contingent resources report to the existing seven-field study subcontract with McDaniel & Associates. In the area of natural gas development support, the report highlights the progress made in submitting public-private partnership (PPP) structuring mechanisms and model transaction documents. The report notes that SGGA submitted Part 1 of the PPP contract deliverables on 13 June and received an extension for the submission of Part 2 until 8 July. The report also notes that SGGA requested and received a three-day extension to submit the final documents for Deliverable B-14, which included an electronic report of the voluminous reports. The report also notes that SGGA continued work on a pre-feasibility study assigned by USAID for a proposed hybrid 10 MW solar/gas-fired power generation plant to be located near Sheberghan. The report highlights the meetings held with various stakeholders, including USAID, MoMP, and DABS, to discuss the project's progress and implementation. The report also notes that SGGA submitted a supplemental report on completion of work on creating, organizing, and cataloging geological sample (drill core samples) libraries for MoMP (Oil & Gas Survey) in Sheberghan and Mazar-e-Sherif on 27 June. This task was authorized by USAID as an addition to the gas reserves task, deliverable B-11. Overall, the SGGA Monthly Report for June 2016 highlights the progress made in various areas of the project, including drilling contract management support, natural gas development support, and pre-feasibility studies. The report also notes the challenges faced by the project, including the inability of MoMP to prepare and issue a request for proposals for a reservoir study of the Juma-Bashikurd Field. The report also highlights the meetings held with various stakeholders, including USAID, MoMP, and DABS, to discuss the project's progress and implementation. The report notes that SGGA will continue to support MoMP as requested, but will have limited ability to provide support during the month of July due to its scheduled closing on 31 July. The report concludes by noting that SGGA expects to receive the Juma-Bashikurd contingent resources report due under the MoMP-TPAO services contract on 20 July.