Financial Advisor for hydrocarbons (International)

Publish Date: Jan 16, 2019

Closing Date: Feb 04, 2019

Tender Document: Download Document



Description:

REQUEST FOR EXPRESSION OF INTEREST.

TERMS OF REFERENCE

Individual Consultant

1.Assignment Information

Assignment Title:

Financial Advisor for hydrocarbons (International)

Functional Area:

Finance

Project:

Afghanistan Extractive Development (AE4D)

Reference No:

MOMP/CS/011-INDV-1397

Contract Type:

Individual Contractor (IC)

Duty Station:

Kabul

Recruitment type:

INDV

Contract Duration:

12/months

Salary Range:

As per company salary scale

Date Posted:

 

Closing date:

 04/Feb/2019

 

  1. Project Description/Background

The development of Afghanistan’s hydrocarbon resources has been identified as a critical link for securing long-term energy security, economic growth, diversification and stability for the country. The development of indigenous gas resources offers immediate opportunities for increased energy access and security, especially in reinforcing the deployment of variable, intermittent renewable energy. Hydrocarbons meet a longer-term goal to increase Afghanistan’s integration into regional (Central/South Asia) development initiatives, including projects such as the TAPI (Tajikistan, Afghanistan, Pakistan, India) Pipeline. Since 2002 the MoMP has made repeated attempts to establish and sustain an enabling environment for private/commercial sector investment, targeting further exploration and development of previously producing fields. Internationally, bid rounds confirmed investor interest, but unaddressed impediments to investment across the full gas value-chain remain. After a decade of efforts, Afghanistan has yet to demonstrate a fully integrated “proof of concept” investment, developing and delivering gas to credit worthy customers.

Available Hydrocarbon Resources. Afghanistan’s hydrocarbon potential extends well beyond the limited exploratory and development work carried out to date on the Amu Darya prospects in the north. The country presents five major and one minor sedimentary basins, all of which are substantially underexplored. Exploration activities have so far been largely confined to northern Afghanistan within the Amu Darya and Afghan-Tajik basins. Limited exploration in the Tirpul basin (Herat Province) confirmed the presence of hydrocarbon resources while the Katawaz and Helmand basins have no reported shows, likely owing to negligible or no exploratory work. The Kushka Basin, also still largely unexplored, constitutes an extension of the highly prolific Amu Darya, home to giant and super giant fields in Turkmenistan and Uzbekistan, including Turkmenistan’s Galkynysh field, one of the largest in the world. The absence of sufficiently comprehensive geological and geophysical data has contributed to hampering the GoA’s efforts to attract foreign capital for exploration and development.

Reserve assessment. More recently (July 2016), an assessment of existing field production data and contingent resources for the known gas fields was conducted under USAID’s Sheberghan Gas Development Program (SGDP). McDaniel & Associates Consultants Ltd. was subcontracted to appraise all existing data and to prepare reserve estimates in accordance with the Petroleum Resource Management System (PRMS), the international standard for reserve evaluation. McDaniel conducted a resource assessment of seven fields (Jarquduq, Khoja Gogerdak, Yatimtaq, Khoja Bolan, Juma/Bashikurd and Shakarak); the company was unable to produce a report for the Jangalikolon and Chekhche fields due to lack of data.

McDaniel’s 2C or “best case” estimate of gas resources in the Sheberghan area (implying a 50% probability of recovery and roughly equivalent to Gustavson’s mean probabilistic estimate of 2005) indicate that after decades in production, remaining resources are approximately equivalent to 30% of those in Gustavson’s 2005 report and highlight the urgent need to stimulate exploratory activities in Afghanistan. McDaniel’s 1C, or “low case” estimate (implying at least a 90% probability of recovery) would be adequate to support a stable supply of natural gas at current production volumes and for proof of concept, gas-based power generation, subject, however, to substantial investments in field production, gathering and processing capacity.

 

USAID: McDaniel assessment

Contingent Resources

 

2C BCM

2C TCF

1C TCF

3C TCF

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Khoja Gogerdak

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Khoja Bolan

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Jangali Kalan

 

 

 

 

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In March 2009, the Ministry of Mines launched the First Afghan Hydrocarbon Bidding Round to initiate hydrocarbon exploration in northern Afghanistan. Three blocks with known oil and gas accumulations were offered. Although 8 companies pre-qualified for the round, only one bid was placed for one block, which was subsequently rejected by the evaluation committee. Two years later, in March 2011, The Ministry of Mines launched the Amu Darya Oil Tender licensing round. Under the round, 3 blocks with discovered oil and gas fields were offered for competitive bidding. The blocks offered were Zamarudsay, Bazarkhami and Kashkari.

The General Directorate of Petroleum (GDP) is a Directorate General within the Ministry of Mines and Petroleum (MOMP) and serves as the regulatory authority responsible for the development of the hydrocarbon resources and administration of Afghanistan’s hydrocarbons contracts. In addition to contractor oversight and compliance, the GDP is responsible for the facilitation of the Government of Afghanistan’s contractual obligations, for developing the oil and gas sector, and for providing advice to the Government of Afghanistan on hydrocarbons-related policies from time to time.

2.Assignment Objective

The objective of the assignment is to provide the Ministry of Mines and Petroleum and GDP with the expert financial advice (1) to develop the existing and prospective oil and gas fields; (2) to develop the necessary financial models to evaluate different investment options available for the development of hydrocarbon resources; and (3) to conduct oversight of- and ensure compliance with financial and fiscal provisions of oil and gas exploration and production contracts

3.Scope of Work

Below is the outline of activities to be undertaken by the Financial Advisor for (Hydrocarbons International.

The consultant shall be responsible for providing qualified finance and accounting support to the MOMP’s and GDP’s staff. Associated tasks will encompass a broad suite of services to include:

  1. Provide support for oil and natural gas development in areas of financial modeling, oversight of- and compliance with E&P contractual work plan execution, and strategic review and financial modelling of any proposed changes to existing contracts
  2. Establish requirements and procedures for contractors to submit all required financial documents, reporting requirements and payments in accordance with contractual and license provisions and relevant laws and regulations
  3. Subject to regulation, establish the price of hydrocarbons for the payment of royalties and other revenues stemming from the production of oil and gas
  4. Work closely with the GDP to review and assess the financial implications of- and compliance with contractual Work Programs & Budgets and cost recovery invoices
  5. Assist GDP in establishing contractual and regulatory provisions to ensure Contractors submit all required financial documents and payments in accordance with Afghan law and contractual obligations
  6. Establish procedures for the collection of the State’s participation, in kind or in currency, as obtained from production contracts and licenses where applicable.
  7. Provide technical support to the GDP and Ministry of Finance-designated personnel in the collection and transfer of royalties and other revenues from the production of hydrocarbons.
  8. Provide fiscal advice to the DG of GDP as needed.

5. Expected Outputs and Deliverables

The main key deliverable of the assignment is:

  1.     The Financial Advisor (International) will be required to produce the below-listed deliverables for the Ministry of Mines and Petroleum:
  2. Develop and conduct on-the-job training and mentoring, including but not limited to:
    • Oil & gas sector financial and accounting practices and procedures
    • Audit procedures for compliance with contractual and regulatory financial and fiscal provisions
    • Procedures for the financial, accounting and fiscal review and assessment of contractual Work Program budgets and fiscal obligations and for their approval process.
  3. Develop financial models for the assessment of oil and gas sector financial and fiscal contractual provisions, including those applicable to the Yatimtaq gas field. 
  4. Develop Petroleum Sector accounting and audit procedures.

4.Length & Location of Assignment

The Financial Advisor will be expected to work closely with formally designated MoMP in Kabul, Afghanistan. The duration of the contract will be 12-months with a potential of extension.

5.Minimum Qualifications

Education: 

At least Master degree in Economics, Finance, ACCA or related subjects from a recognized accredited university. (Master’s degree is strongly preferred).

Experience:

 

  • Minimum of 10 years of work experience in the oil & gas financial sector.
  • Minimum of 10 years of practical experience in private sector compliance with contractual and regulatory requirements in the oil & gas sector.
  • Must have experience dealing with Ministry-level individuals on such matters as oil and gas field development and other petroleum and energy related topics.
  • Fluency in English (reading, writing, listening, and speaking).

Competencies:

  • Strong analytical skills and report writing skills
  • Understanding and knowledge of Finance.
  • Ability to work under pressure, effectively coordinate research with the team and meet tight deadlines without compromising quality of work.
  • Computer literacy and knowledge of standard PC software packages (MS. Excel, PowerPoint, Word, etc.) is essential.

Language Requirement

  • Fluency in English

 

6.Conflict of Interest

 The Financial Advisor is required to disclose on any potential, actual, or perceived conflicts of interest arising out of other assignments or a conflicting involvement in other assignments.

7.Confidentiality 

 The Financial Advisor for hydrocarbon agrees to keep confidential all information that it receives, directly or indirectly, from the Afghan Government, its agencies or ministries, or any other source, as well as all reports, briefs and opinions prepared by the Consultant, or by third parties, on the basis of such information (collectively, the Material). The Advisor will use the Material exclusively for the purpose of preparing deliverables relevant to this assignment as requested by the Government of Afghanistan and/or the Ministry of Mines and Petroleum. The confidentiality obligations will not apply to information in the public domain

8.Application procedure:

Qualified and interested candidates are requested to submit the following documentations:

  1. Cover letter including a Brief Note stating why the candidate thinks s/he is the best candidate for the assignment,
  2. Personal CV with details of work experience relevant to the announced TOR, , submitting previous publications is an asset

9.Submission Guideline

The applicants should submit his/her resume with subject line stating the job title and vacancy no. no later than the closing date.

Note: Only application send to below address will be considered. Applications send to any other address even within the organization cannot be considered.

  1. Submission Email

To: procurement@momp.gov.af

CC: khalid.ahmadzai@momp.gov.af, ahmad.khalid@yahoo.com, abdulsattar@momp.gov.af