Finder Energy Holdings Ltd (ASX:FDR) has struck a non-binding letter of intent with SundaGas Banda Unipessoal, a subsidiary of AIM-listed Sunda Energy, to work together on securing a drilling rig for their respective offshore Timor-Leste campaigns.
The proposed collaboration brings together SundaGas’ planned Chuditch appraisal well and Finder’s planned three development wells at the Kuda Tasi and Jahal project, creating a combined drilling program expected to run for almost 200 days.
The key outcome for Finder is the potential to improve rig access while lowering drilling costs. The company said the collaboration is expected to deliver operational efficiencies and savings through shared logistics, procurement synergies and better rig utilisation.
For Finder, the arrangement also helps validate the scale and timing of its planned KTJ development activity. By combining its campaign with SundaGas’ Chuditch-2 appraisal well, Finder is effectively building a larger offshore drilling program that may be more attractive to rig providers than a shorter standalone campaign.
Shared campaign could improve rig availability
Rig procurement for offshore Timor-Leste has been a challenge. Sunda said securing a rig for Chuditch-2 had proved difficult given the relatively short duration of that well on its own, while the addition of Finder’s development wells creates a combined program of almost 200 days and a more compelling contracting opportunity.
Under the LOI, the parties will collaborate on identifying and securing a contractor, aligning contract terms and operational schedules, and coordinating support and logistics. Finder has requested a semi-submersible rig rather than a jack-up, reflecting water depths of about 400 metres at KTJ, and said it has already advanced work to secure a suitable unit for both locations.
What comes next will depend on formalising the arrangement and locking in a rig. The companies intend to enter a more detailed agreement before October 31, 2026 unless extended by mutual agreement. SundaGas has indicated Chuditch-2 could be drilled as early as possible in 2027, subject to rig availability, while Finder is targeting a final investment decision on KTJ in mid-2026.
The current agreement stops short of a binding contract, but signals both companies are trying to de-risk drilling logistics ahead of their next major offshore work programs in Timor-Leste.