Sunda Energy PLC has received a 12-month extension to the current phase of its production sharing contract (PSC) offshore Timor-Leste in Southeast Asia, giving its joint venture more time to negotiate a path to drilling the Chuditch-2 appraisal well.

Granted by upstream regulator Autoridade Nacional do Petróleo (ANP), the extension applies to PSC TL-SO-19-16, which contains Chuditch gas field under a contract operated Sunda subsidiary SundaGas Banda Unipessoal Lda. on behalf of government-owned partner TIMOR GAP Chuditch Unipessoal Lda., Sunda said in a release Oct. 19.

In June, ANP notified the partners—which have been preparing to drill Chuditch-2—of its intention to terminate the PSC, citing the joint venture’s failure to meet the contract-year 3 minimum work requirement for drilling the well by June 18, 2026. That notice gave the partners 120 days to submit written representations before ANP could decide whether to terminate the contract, Sunda said.

Since receiving the notice, SundaGas and TIMOR GAP have held discussions with ANP on a joint plan to advance the well, including a potential farm-in by TIMOR GAP for a larger working interest and a possible transfer of operatorship to the government-owned partner.

With the recent extension allowing discussions to continue, Sunda said the parties intend to complete them, including binding documentation and required ANP approvals, before yearend.

The extension also suspends the uplift on the PSC cost-recovery account from June 19, 2024, until drilling operations on Chuditch-2 begin.

Sunda said it continues to liaise with Finder Energy Holdings Ltd. under a letter of intent announced in April concerning possible coordination between the Chuditch-2 and Kuda Tasi and Jahal (KTJ) drilling campaigns.

Rig secured for KTJ development

Separately, Finder on Oct. 15 said it had signed a contract with ENEOS Drilling Ltd. for the Hakuryu-5 semisubmersible rig to drill three firm development wells at the KTJ project offshore Timor-Leste. The contract includes options for two additional wells, which could accommodate participation by other operators or support exploration and appraisal drilling in PSC 19-11.

The firm program is estimated to take about 150 days, including completion work and installation of wellheads and Christmas trees for tie-in to the Petrojarl I floating production, storage, and offloading (FPSO) vessel. The contract’s commencement window runs from Dec. 1, 2027, to Mar. 15, 2028, subject to contractual requirements, carrying a minimum commitment of 140 days.

With the contract still conditional on approvals from the KTJ joint venture, the government, and Finder’s board by Dec. 31, 2026, as well as approvals from ENEOS’s parent company and board by Nov. 16, 2026, Finder said it is targeting a final investment decision (FID) for KTJ by Nov. 30, 2026, subject to partner investment criteria, regulatory and joint-venture approvals, project agreements, and financing.

Finder estimated the contract value at about $42.3 million—a gross joint-venture cost—based on a 150-day program and other assumptions, with final payment dependent on operating duration and applicable rates.

Finder said it expects to fund its share primarily through project debt financing under development with assistance from Barrenjoey DCM. The contract also requires staged bank guarantees totaling $19.3 million gross.

As part of the rig award—which follows a tender, evaluation, and negotiation process that included an inspection in Labuan, Malaysia—Finder said it has already secured or begun procuring key equipment and services from:

• Sumitomo Corp., which will supply casing, production liner, and completion tubing.
• SLB, which will supply upper-completion equipment.
• SLB’s OneSubsea joint venture, which is fabricating three Christmas trees.
• AGR Group, which will provide drilling management services.

Finder will retain overall responsibility as operator, the company said.