Finder Energy is accelerating development of its KTJ oil project in Timor-Leste, securing key infrastructure and funding partnerships to target first oil by the end of 2027. The company’s strategic moves include acquiring the Petrojarl I FPSO and a farmin agreement covering half the development costs.
- Acquisition of Petrojarl I FPSO to reduce operating costs and extend field life
- Farmin agreement with TIMOR GAP secures 50% of KTJ Project development capex
- Targeting final investment decision (FID) by mid-2026 and first oil by late 2027
- Forecast initial production rates of 25,000–30,000 barrels per day
- Strategic alliance with SLB accelerates front-end engineering and design (FEED)
Strategic Infrastructure Acquisition
Finder Energy Limited (ASX: FDR) has taken a significant step forward in its KTJ Project development by acquiring the Petrojarl I floating production storage and offloading (FPSO) vessel. This move is expected to materially de-risk the project by eliminating charter costs and enabling a faster path to first oil. The Petrojarl I, a proven asset with a strong operational track record including 98% uptime in Brazil, offers a fit-for-purpose, low-carbon footprint solution tailored for the Kuda Tasi and Jahal fields.
Funding and Partnership Milestones
The company has also secured a farmin agreement with Timor-Leste’s national oil company, TIMOR GAP, which will cover 50% of the development capital expenditure estimated at US$170 million. Finder retains a 66% interest and operatorship of the project, with the remaining development costs expected to be funded through debt. To that end, Finder has appointed Barrenjoey to lead the debt funding process, targeting a mix of banks, credit funds, and offtakers ahead of the mid-2026 final investment decision.
Accelerated Development Timeline
With front-end engineering and design (FEED) completed on time and on budget, and a strategic alliance with SLB mobilising resources across subsea integration and well construction, Finder is aiming for a final investment decision by June 2026. This timeline supports a first oil target by the end of 2027, with initial production forecast between 25,000 and 30,000 barrels of oil per day, constrained by facility capacity. The project is expected to produce approximately 10 million barrels within the first 18 months.
Resource Upgrades and Exploration Upside
The KTJ Project holds gross 2C contingent resources of 25 million barrels, verified independently by RISC Advisory. Recent 3D seismic reprocessing has significantly increased gross rock volumes at the nearby Krill and Squilla discoveries, suggesting further upside potential. Finder’s portfolio also includes high-impact appraisal and exploration opportunities across the Asia Pacific and UK North Sea regions, positioning the company for sustained growth beyond KTJ.
Economic and Operational Benefits
Ownership of the Petrojarl I FPSO is expected to deliver substantial economic benefits by reducing operating expenses and extending field life by an estimated 2 to 3 million barrels. The vessel’s flexibility also allows for future tie-backs of discoveries such as Krill and Squilla, enhancing the project’s long-term value. Finder’s management team, including incoming board member Steve Gardyne with maritime expertise, is actively managing procurement and contracting to maintain momentum.
Bottom Line?
As Finder Energy advances toward FID, the KTJ Project’s secured infrastructure and funding partnerships set the stage for a pivotal phase in Timor-Leste’s oil development story.
Questions in the middle?
- Will Finder secure the remaining development funding on favourable terms ahead of FID?
- How will operational performance of the Petrojarl I FPSO impact production ramp-up and costs?
- What is the timeline and capital requirement for appraisal drilling at Krill and Squilla discoveries?