How Finder Energy’s FPSO Buy and TIMOR GAP Deal Accelerate KTJ First Oil
Finder Energy is accelerating its KTJ oil project in Timor-Leste, securing a key FPSO vessel and a major funding partnership to target first oil by the end of 2027. Strategic alliances and resource upgrades underpin a fast-moving development plan.
- Acquisition of Petrojarl I FPSO to reduce operating costs and accelerate timeline
- TIMOR GAP farmin agreement secures 50% of development capital expenditure
- Strategic alliance with SLB to fast-track engineering and project delivery
- Independent resource upgrade confirms 25 million barrels 2C contingent resources
- Targeting first oil by year-end 2027 with initial production forecast at 25,000 barrels per day
Accelerating Development in Timor-Leste
Finder Energy Limited (ASX, FDR) is making significant strides in advancing its KTJ Project, a combined development of the Kuda Tasi and Jahal oil fields in Timor-Leste. The company has outlined an ambitious timeline targeting first oil by the end of 2027, supported by a series of strategic moves designed to de-risk and expedite the project.
Central to this acceleration is the acquisition of the Petrojarl I (PJI) Floating Production, Storage and Offtake (FPSO) vessel. Ownership of the PJI is expected to substantially reduce operating expenses by eliminating third-party charter fees, while also providing a fast and cost-effective redeployment solution tailored to the KTJ Project’s production profile. The vessel’s proven track record, including a world record for multiple redeployments and high uptime, adds confidence to the project’s operational outlook.
Funding and Partnerships Drive Momentum
Finder Energy has secured a farmin agreement with TIMOR GAP, the National Oil Company of Timor-Leste, which will fund 50% of the development capital expenditure, estimated at US$170 million. This partnership not only provides substantial financial backing but also aligns local interests with the project’s success, significantly de-risking the path to final investment decision (FID) expected in the first half of 2026.
Complementing this, a strategic alliance with global energy technology leader SLB is accelerating the Front End Engineering and Design (FEED) phase. SLB’s integrated project management and technical expertise are helping to fast-track drilling, subsea infrastructure, and reservoir development, positioning the project approximately 12 months ahead of schedule.
Resource Upgrades and Production Outlook
An independent resource upgrade by RISC Advisory has confirmed the KTJ Project’s gross 2C contingent resources at 25 million barrels, with high-quality light sweet oil expected to yield strong reservoir performance. Initial production forecasts target 25,000 barrels of oil per day, constrained by facility capacity, with an anticipated 10 million barrels produced in the first 18 months.
Ownership of the PJI FPSO is also expected to extend the field life by enabling additional production of 2 to 3 million barrels through lower operating costs and flexibility to tie back future discoveries such as Krill and Squilla, which themselves hold significant upside potential.
Exploration Upside and Broader Portfolio
Beyond the KTJ Project, Finder Energy’s portfolio includes high-impact appraisal and exploration opportunities across the Asia Pacific region and the UK North Sea. Recent seismic reprocessing and mapping have identified substantial increases in gross rock volumes at discoveries like Krill and Squilla, suggesting a larger resource base than previously estimated.
In Australia’s North West Shelf and the UK North Sea, the company holds multiple exploration licences with promising prospects, supported by strategic partnerships with nearby facility owners. These assets offer potential for future growth beyond the current development focus.
Looking Ahead
Finder Energy’s pipeline of catalysts for 2026 includes securing a drilling rig, updating production forecasts, completing FEED and the Field Development Plan (FDP), securing debt funding, and achieving FID with booked 2P reserves. The company’s clear strategic priorities and partnerships position it well to deliver on its accelerated development timeline.
Bottom Line?
With key partnerships and asset ownership in place, Finder Energy is poised to transform the KTJ Project from concept to first oil within two years, but execution risks remain as the company moves toward FID.
Questions in the middle?
- Will Finder Energy secure the necessary drilling rig and debt funding on schedule to meet FID targets?
- How will the ownership of the Petrojarl I FPSO impact long-term operational flexibility and costs?
- What is the potential timeline and scale for developing upside resources like Krill and Squilla?
