SundaGas Banda Unipessoal, a wholly owned subsidiary of Sunda Energy, has signed a letter of intent with Finder Timor-Leste, a subsidiary of Finder Energy, to work together on securing a drilling rig for offshore campaigns in the Democratic Republic of Timor-Leste.

The cooperation covers the drilling programs of both companies offshore Timor-Leste. SundaGas Banda Unipessoal operates the TL-SO-19-16 production sharing contract with its government-owned joint venture partner Timor Gap Chuditch Unipessoal. The contract contains the Chuditch gas field, where the company plans to drill the Chuditch-2 appraisal well.

Finder Timor-Leste is the operator of the Kuda Tasi and Jahal fields, also in partnership with Timor Gap. The company is preparing to drill at least three wells as part of the KTJ field development and is targeting a final investment decision by mid-2026.

Under the letter of intent, the two companies agreed to collaborate on a proposed combined drilling campaign in Timor-Leste. This includes seeking a mutually acceptable and technically suitable drilling rig for the KTJ and Chuditch-2 wells, seeking to align contracts for other required materials and services, coordinating project management, planning and execution activities where possible, and providing the support and information needed to execute the drilling campaign efficiently.

The letter of intent will end on the earlier of a formal rig-sharing agreement or 31 October 2026, unless both parties agree to extend it. Either party also has the right to terminate the letter of intent at any time.

The KTJ wells are planned in water depths of around 400 m, which means Finder Timor-Leste requires a semi-submersible rig rather than a jack-up. The Chuditch-2 well location is in around 65 m of water, and the Chuditch-1 discovery was drilled by Shell with a semi-submersible unit. Finder Timor-Leste has already advanced its work to secure a semi-submersible rig suitable for both locations.

SundaGas Banda Unipessoal said minor amendments to the Chuditch-2 well engineering design will be needed for the use of a different rig type, and that work will begin shortly. The two companies have also started discussions on project management and logistics planning. Chuditch-2 drilling is expected to start as early as possible in 2027, subject to rig availability.

Sunda Energy said securing a rig for Chuditch-2 has been difficult because the planned campaign would last only 35 to 40 days, with no immediate follow-up work for the rig. By combining this with Finder Timor-Leste’s plan to drill three KTJ development wells, the total operating period would be close to 200 days.

The company said the letter of intent is expected to give both sides an opportunity to capture operational synergies and savings, despite changes to SundaGas Banda Unipessoal’s operating plan, including the use of a semi-submersible rig.

Because the KTJ wells are expected to be drilled in 2027, SundaGas Banda Unipessoal has submitted a request on behalf of the Chuditch joint venture to Autoridade Nacional do Petróleo to extend the current contract period of the production sharing contract. The contract period expires on 18 June 2026, and the regulator is considering the request.

Dr. Andy Butler, CEO of Sunda Energy, said the plan agreed with Finder Energy could create synergies and help both parties meet their operational goals. He also said that while the revised plan moves Chuditch-2 drilling later than the earlier Q2 2026 schedule, sharing a rig and certain materials and services would improve the project’s execution prospects.