Finder Energy Boosts KTJ Project Confidence with Detailed Subsea Study

• Nobleseas Engineering delivers Class IV cost estimates for KTJ subsea development
• Eight development concepts evaluated, highlighting a preferred 'Hub & Spoke' design
• Cost benchmarking against regional analogues enhances estimate reliability
• Exploration of second-hand equipment aims to reduce capex and accelerate first oil
• Study findings guide FPSO selection and next-phase engineering design

Subsea Study Advances KTJ Project

Finder Energy Holdings Limited has taken a significant step forward in the development of its Kuda Tasi and Jahal (KTJ) oilfields with the completion of a detailed Subsea Concept Study by Nobleseas Engineering. The study, which includes Class IV cost estimates, offers a more granular understanding of the subsea infrastructure requirements and associated costs than previous assessments, providing the company with greater confidence in the project's economic viability.

Nobleseas Engineering, known for its expertise in offshore and subsea engineering, evaluated eight shortlisted development concepts for the KTJ fields. These concepts encompass various phased development scenarios designed to potentially fast-track first oil production. The study's scope covered schematic layouts, umbilical designs, flowline types, subsea structures, and production system hardware, all benchmarked against regional analogues to ensure robust cost estimations.

Preferred Development Concept: Hub & Spoke

Among the evaluated concepts, the 'Hub & Spoke' design emerged as a preferred approach. This configuration features a central gathering manifold where production from individual wells is combined, with flow control managed via choke valves on the manifold rather than on the Christmas trees. The design utilises single 6-inch flexible production flowlines from each well to the manifold and a 10-inch flexible flowline/riser to the Floating Production, Storage and Offtake (FPSO) vessel. This setup allows for optimisation of the FPSO location, potentially reducing flowline lengths and associated costs.

The study also highlights the importance of phasing and design choices, with cost differentials between concepts informing Finder's forthcoming development plan decisions. The Class IV cost estimates carry an accuracy range of -30% to +50%, reflecting the early stage of project definition but providing a credible financial framework for progressing the project.

Capex Savings and Project Acceleration

In a strategic move to reduce capital expenditure and accelerate the timeline to first oil, Finder is actively evaluating the market for second-hand and refurbished equipment that meets regulatory and industry standards. This approach could yield substantial savings and influence the final selection of development concepts and infrastructure, including the FPSO.

CEO Damon Neaves emphasised the company's focus on de-risking the KTJ project, stating that the study enhances their understanding of subsea requirements and costings, which underpin the project's economics. The findings will also refine the scope for the next phase of engineering design, reinforcing efforts to fast-track production.

Looking Ahead

As Finder Energy moves forward, the insights from the Nobleseas report will be pivotal in guiding infrastructure decisions and project scheduling. The company's commitment to leveraging detailed engineering studies and cost benchmarking signals a disciplined approach to unlocking the substantial potential of the Kuda Tasi and Jahal oilfields.

Bottom Line?

Finder’s detailed subsea study marks a crucial step toward de-risking and accelerating KTJ’s path to first oil.

Questions in the middle?

• How will the selection of second-hand equipment impact final project costs and timelines?
• What are the key risks that could affect the accuracy of the Class IV cost estimates?
• When can investors expect updates on FPSO selection and the next engineering phase?