How TIMOR GAP’s $338M Boost Accelerates Finder Energy’s KTJ Project
Finder Energy has secured a pivotal funding boost as TIMOR GAP increases its stake in the KTJ Project, accelerating the path to final investment decision by mid-2026. This farmin agreement significantly de-risks the project and aligns with Timor-Leste’s strategic development goals.
- TIMOR GAP raises interest in PSC 19-11 from 24% to 34%
- TIMOR GAP commits up to US$338 million towards KTJ Project development capex
- Finder retains 66% ownership and operatorship of the project
- Funding support includes US$15 million pre-FID acceleration costs
- Final Investment Decision targeted by mid-2026 with key project milestones ahead
Strategic Partnership Strengthened
Finder Energy Holdings Limited has taken a significant step forward in advancing the KTJ Project offshore Timor-Leste by executing a binding Farmin Agreement with joint venture partner TIMOR GAP. The agreement increases TIMOR GAP’s participating interest in PSC 19-11 from 24% to 34%, marking a clear vote of confidence in the project’s prospects and the acceleration strategy targeting a Final Investment Decision (FID) by mid-2026.
Under the terms of the deal, TIMOR GAP will contribute 50% of the total development capital expenditure from FID, capped at US$338 million. This substantial financial commitment not only eases the capital burden on Finder but also materially de-risks the project, enhancing its appeal to potential debt financiers and other stakeholders.
Funding and Operational Control
Finder will maintain majority ownership with a 66% participating interest and retain operatorship of PSC 19-11, ensuring it remains in control of the project’s execution. TIMOR GAP’s increased involvement includes immediate funding support prior to FID, covering 24% of costs to accelerate the investment decision up to a cap of US$15 million, alongside a retrospective contribution of 12% of other joint venture expenditures from the start of 2025.
The partnership is further cemented by TIMOR GAP’s commitment to second personnel to Finder’s Perth office, facilitating close collaboration during the critical acceleration phase. Additionally, TIMOR GAP or its affiliates will provide essential services such as helicopter transport and supply boats, integrating operational support with financial backing.
Project Milestones and Outlook
The KTJ Project is progressing through detailed engineering and design phases, with a focus on transforming conceptual plans into a fully defined Field Development Plan (FDP). Key upcoming milestones include securing a Floating Production Storage and Offtake (FPSO) vessel, independent resource certification for the Kuda Tasi and Jahal oil fields, updated reservoir modelling, and finalising the drilling unit for development wells.
Finder’s CEO Damon Neaves highlighted the strategic importance of the agreement, noting it aligns with Timor-Leste’s nation-building objectives and significantly strengthens the project’s foundation. The company aims to finalise critical project elements and secure the remaining funding balance to meet the mid-2026 FID target.
Regulatory and Market Considerations
Completion of the farmin transaction remains subject to regulatory approvals from Timor-Leste’s National Petroleum Authority and Ministry of Petroleum and Mineral Resources, as well as third-party consents including from Inpex. The agreement includes provisions to extend the FID deadline under certain circumstances, reflecting the complexities of offshore development projects.
Investors are invited to engage directly with management during a scheduled webinar on 26 September 2025, where CEO Damon Neaves will discuss the farmin agreement and project progress in detail.
Bottom Line?
With TIMOR GAP’s increased stake and funding commitment, Finder Energy is poised to accelerate KTJ Project development, but regulatory approvals and final funding remain critical hurdles.
Questions in the middle?
- Will regulatory and third-party approvals be secured smoothly to complete the farmin transfer?
- How will Finder secure the remaining funding required to meet the mid-2026 FID target?
- What impact will TIMOR GAP’s increased involvement have on operational decisions and project timelines?
