(WO) – Timor-Leste’s upstream regulator, Autoridade Nacional do Petróleo (ANP), has granted a Sunda Energy subsidiary a 12-month extension to the current phase of production sharing contract TL-SO-19-16, which contains the Chuditch gas field. The extension gives the subsidiary, SundaGas, and its partner, state-owned TIMOR GAP, more time to agree on a path to drilling the Chuditch-2 appraisal well.
In June, ANP sent a notice of intention to terminate the PSC. It said the joint venture had breached the contract by not drilling Chuditch-2 by June 18, which was the minimum work requirement for contract year 3. The partners then had 120 days to respond.
Since then, the partners have been in talks with ANP about how to move forward. Options under discussion include a farm-in that would give TIMOR GAP a larger working interest, and a transfer of operatorship to TIMOR GAP. Under the extension, the partners aim to sign binding agreements and get ANP approval before the end of 2026. As a condition, the uplift on the PSC’s cost recovery account is suspended until drilling on Chuditch-2 begins.
Sunda also noted that Finder Energy signed a contract on Oct. 15 for the Hakuryu-5 semisubmersible to drill its KTJ development in Timor-Leste. That contract includes two optional well slots that could be offered to other operators. Under a letter of intent signed in April, Sunda is still working with Finder on coordinating the KTJ and Chuditch-2 drilling campaigns.
“I am delighted that an extension has been granted to the PSC and am grateful to ANP for their continued support of our efforts to progress the Chuditch project,” said Sunda CEO Andy Butler.
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