Sunda Energy has successfully received a 12-month extension of the TL-SO-19-16 production sharing contract from the upstream regulatory authority of Timor-Leste, the Autoridade Nacional do Petróleo (ANP). This contract includes the Chuditch gas field, which has received special attention due to its significance in Timor-Leste's energy development plans.
Contract Extension Details
The contract extension provides Sunda's subsidiary, SundaGas, and its partner, the state-owned TIMOR GAP, with additional time to agree on the drilling strategy for Chuditch-2. This extension allows the parties to explore various options, such as increasing TIMOR GAP's stake in the operations and transferring responsibilities to this company. The aim of these negotiations is to sign binding agreements and obtain ANP approval before the end of 2026. As a condition, the increase in costs related to the reimbursement of expenses for this contract has been suspended until the commencement of drilling for Chuditch-2.
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Development of the Chuditch Gas Field
The Chuditch gas field is considered one of the key projects in the development of Timor-Leste's energy resources. Given the gas resources available in this field and its potential capacities, the ongoing negotiations between Sunda and TIMOR GAP could lead to effective collaboration and optimal utilization of these resources. Additionally, Sunda Energy has announced that on October 15, it signed a contract with Finder Energy to use the semi-submersible rig Hakuryu-5 for drilling the KTJ project in Timor-Leste. This contract includes two optional drilling locations that can be offered to other operators.
As part of an agreement signed in April, Sunda is still collaborating with Finder on the coordination between the KTJ and Chuditch-2 drilling campaigns. Andy Butler, CEO of Sunda Energy, stated: "I am pleased with the PSC extension and thank the ANP for their continued support in advancing the Chuditch project." These remarks reflect the high importance of this project for Sunda and its future collaborations with NAP and TIMOR GAP.
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