Finder Energy has signed a contract worth an estimated $42.3 million with Eneos Drilling for the Hakuryu-5 semi-submersible rig to drill three development wells at the Kuda Tasi and Jahal (KTJ) offshore oil project in Timor-Leste.
The agreement covers the provision of the rig, associated equipment and personnel for a firm three-well campaign, with options for two additional wells, Finder said in an October 15 announcement.
The contract has a minimum commitment of 140 days, while the three-well drilling and completion program is expected to take approximately 150 days.
The estimated $42.3 million contract value represents the gross joint venture cost, with the final amount dependent on the actual duration of operations and applicable contractual rates.
Drilling is scheduled to begin from December 1, 2027, with a contractual commencement window extending to March 15, 2028.
The agreement remains conditional on obtaining the required KTJ joint venture, government and Finder board approvals by December 31, 2026, as well as Eneos parent company and board approvals by November 16, 2026.
The drilling campaign will include running completion assemblies and installing wellheads and Christmas trees, preparing the wells for connection to the Petrojarl I floating production, storage and offloading (FPSO) vessel.
Finder said the two optional drilling slots could accommodate work for other operators or exploration and appraisal drilling targeting potential tie-back opportunities within production sharing contract PSC 19-11.
The company is progressing the remaining approvals, project agreements and financing arrangements needed to reach a final investment decision (FID), which it is targeting by November 30, 2026.
Finder has also secured several key equipment and service arrangements for the development, including casing and tubing from Sumitomo, three Christmas trees from OneSubsea, drilling management services from AGR and completion equipment from SLB.
Finder will retain overall responsibility for drilling operations as the project operator, as it works with its joint venture partner TIMOR GAP to advance the KTJ development towards execution.
To remind, Finder signed a letter of intent with Sunda Energy in April 2026 to coordinate their planned offshore drilling campaigns in Timor-Leste, potentially combining Sunda's Chuditch-2 appraisal well with Finder's KTJ development wells.
The proposed collaboration includes sharing a drilling rig, aligning procurement of materials and services, and coordinating drilling activities. Sunda's subsidiary SundaGas operates the Chuditch gas field under a separate production sharing contract, also in partnership with TIMOR GAP.
Following Finder's October 15 announcement of the Hakuryu-5 contract, Sunda confirmed it was continuing discussions with Finder under the existing agreement regarding potential cooperation between the two drilling campaigns.
Finder's rig contract includes options for two additional wells that could accommodate other operators, although participation by Sunda has not been confirmed.