Finder Energy has executed a binding farm-in agreement with joint venture partner Timor Gap to increase the Timor-Leste state oil company’s stake in Production Sharing Contract (PSC) 19-11, entailing the Kuda Tasi & Jahal (KTJ) fields development project, from 24% to 34%.
Under the agreement and subject to final investment decision (FID) for the projects taking place before September 30, 2026, Timor Gap will contribute 50% of total development capital expenditure for the KTJ oil project from the FID, up to a gross cap of $338 million.
The company will also provide immediate funding support before FID, including 24% of costs to accelerate FID, capped at $15 million, and 12% of the costs of other joint venture expenditure retrospectively from January 1, 2025 until FID.
Finder will retain a 66% interest and operatorship of PSC 19-11. Completion of the transfer of the farm-in interest is subject to regulatory and third-party approvals, which Finder anticipates will occur in or about late October 2025.
“This agreement significantly de-risks the development, underpins the project’s strategic importance for Timor-Leste and marks a major milestone for the KTJ Project,” said Chief Executive Damon Neaves.
The KTJ Project, covering the Kuda Tasi and Jahal oil fields, is positioned to be the first fully sovereign upstream development for Timor-Leste, aligning with the country’s nation-building strategy, according to Finder.
Finder added the deal strengthens the project’s funding base as the company works towards securing an FPSO, a drilling unit, and completing front-end engineering and design.
“During this stage we are undertaking detailed subsurface evaluation and reservoir modelling, refining SPS components, FPSO selection and interface engineering as part of FEED to refine technical specifications, cost estimates, and schedules.
“Key commercial and regulatory work is also being undertaken, including partner alignments, regulatory approvals and engagement with contractors and suppliers. Risk assessments, environmental and social impact studies and project execution strategies are also being completed,” Finder said in a statement.