Sunda Energy PLC (AIM:SNDA)’s wholly owned subsidiary SundaGas Banda Unipessoal has signed a Memorandum of Understanding (MOU) with the Government of Timor-Leste for the potential development of Chuditch PSC gas resources.
The MOU establishes a framework for evaluating the development of Chuditch gas, including potential pipeline export to the Bayu Undan field and onward transmission to LNG facilities on Timor-Leste’s south coast.
Engineering and commercial feasibility studies are underway, with drilling of the Chuditch-2 appraisal well scheduled for the second quarter of 2025.
Subject to a successful production flow test at Chuditch-2, SundaGas plans to deliver gas through Bayu Undan facilities at an agreed production rate.
The Timor-Leste Ministry of Petroleum and Mineral Resources (MPMR) would facilitate the necessary infrastructure and agree to purchase the gas.
These commitments are non-binding and contingent upon successful testing and further agreements.
Sunda Energy’s chief executive Andy Butler said: "The close relationship that we enjoy with the government of Timor-Leste, and our shared desire to expedite development of Chuditch gas, continues to result in highly effective collaboration.
“Consequently, we have arrived at an exciting development concept that we're jointly evaluating, and which offers a potentially fast-tracked production timeline with potential significant revenues for the Timorese nation and all stakeholders.
“We greatly look forward to completion of the Feasibility Study and further acceleration of our activities as we progress towards the upcoming appraisal drilling and beyond."