Finder Energy has partnered with global energy giant SLB to fast-track the engineering phase of the Kuda Tasi and Jahal oil fields, potentially bringing forward first oil by a year. This strategic alliance promises cost savings and a streamlined path to project execution.
- Strategic alliance formed between Finder Energy and SLB
- FEED phase accelerated by approximately 12 months
- Joint integrated project team established under Finder COO leadership
- Collaborative contracting model expected to reduce costs
- Estimated US$0.9 million net commitment for accelerated FEED
Strategic Alliance to Accelerate Development
Finder Energy Holdings Limited has announced a significant strategic alliance with Schlumberger (SLB), a global leader in energy technology, to accelerate the Front End Engineering and Design (FEED) phase of the Kuda Tasi and Jahal (KTJ) oil fields development. This partnership aims to fast-track key drilling and subsea engineering components by approximately 12 months, a major step forward in bringing the project closer to First Oil.
The alliance includes a Development Alliance Agreement and an Accelerated FEED Project Agreement, under which SLB is immediately mobilizing technical and project management resources across multiple disciplines such as subsurface analysis, well construction, and subsea engineering. This rapid deployment is designed to compress the FEED timeline to between six and nine months, significantly ahead of the original schedule.
Integrated Team and Cost Efficiency
A joint integrated project team has been formed, led by Finder’s COO Mark Robertson and overseen by a steering committee comprising senior management from both companies. This integrated approach is expected to deliver a seamless end-to-end solution, reducing technical and schedule risks. The alliance also introduces a collaborative contracting model, which is anticipated to generate cost savings for Finder by optimizing project scope and leveraging SLB’s global procurement capabilities.
Financially, the accelerated FEED work carries an estimated net commitment of approximately US$0.9 million for Finder, a figure already accounted for in the company’s forecast expenditure budget. Importantly, the alliance agreement does not bind Finder to future expenditures beyond the FEED phase, leaving subsequent investment decisions subject to further agreements and regulatory approvals.
Local Impact and Future Milestones
SLB’s established presence in Timor-Leste and its commitment to local employment and community investment add a socio-economic dimension to the alliance. The partnership is expected to contribute positively to the local economy while advancing the KTJ Project’s development.
Finder’s CEO Damon Neaves highlighted the strategic importance of this alliance, emphasizing its role in accelerating the pathway to Final Investment Decision (FID), construction, and ultimately, First Oil. The company is concurrently focusing on other critical workflows, including FPSO selection and procurement of long-lead items, which will further influence the project timeline.
As the accelerated FEED progresses, Finder plans to announce a definitive project timeline to First Oil, marking a critical milestone for investors and stakeholders eager to see tangible progress in this promising offshore development.
Bottom Line?
This alliance with SLB could redefine the KTJ Project’s timeline and cost structure, setting the stage for a faster transition to production.
Questions in the middle?
- How will the accelerated FEED impact the timing of the Final Investment Decision?
- What are the potential cost implications beyond the FEED phase under this alliance?
- How will local Timor-Leste stakeholders benefit from SLB’s increased involvement?