Sheberghan Gas Generation Activity (SGGA) Quarterly Report

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 main objective is to increase the production of natural gas in the region. The project's progress during the period of July 1 to September 30, 2015, was marked by several challenges. The drilling of the Juma #2 well was completed at a total depth of 3481 meters, which is above the projected gas/water contact. However, the well was found to have low porosity and fractured rock, which resulted in minimal gas volumes and inability to maintain steady pressures. As a result, the well was determined to be non-commercial and was plugged and abandoned. The project team, led by Advanced Engineering Associates International, conducted a geological review of other Bashikurd wells to assess the viability of planned work on the Bashikurd 3 well. The review indicated that the Bashikurd 9 well may not be viable for re-entry, and USAID decided not to provide funding for its re-entry. However, the project team recommended that the Bashikurd 3 well be re-entered and deepened, and USAID agreed to continue funding for this work. The project team also encountered difficulties in obtaining payment from the Ministry of Finance for TPAO's work on the Juma 2A well. The Ministry of Finance cited that the previous extension of the contract was not approved by the Special Procurement Commission, although neither Afghan law nor regulations appear to require this. MoMP staff refused suggestions to have the Ministry of Mines intervene at Ministry of Finance to get the invoice paid. The project team also completed gathering well and field data for the seven fields to be reviewed, and scanning of the voluminous data collected was completed. However, the data collection was hampered by the fact that records were poorly organized, scattered across MoMP locations in Kabul, Sheberghan, and Mazar-e-Sharif, and MoMP does not maintain either databases or indices of its geological records. The project's progress during this period was also marked by delays and challenges in obtaining approvals and payments. The project team recommended that MoMP take steps to obtain legal assistance regarding the SPC requirement and to have the Ministry of Mines intervene at Ministry of Finance to get the invoice paid. However, MoMP staff refused these suggestions. The project's financial situation is also a concern, with the Ministry of Finance having not yet made payment for TPAO's work on the Juma 2A well. The project team recommended that MoMP take steps to resolve this issue, but MoMP staff refused to take action. Overall, the project's progress during this period was marked by several challenges and delays. The project team is working to overcome these challenges and to ensure the successful completion of the project.